RLinda ! GOLD-> The price is renewing its highs. Breakout

1 Mar 2023

Gold rose to a one-week high on Wednesday amid a weaker dollar. Concerns about further interest rate hikes in the U.S. amid stubbornly high inflation worldwide are holding back prices. Gold comes under renewed fundamental pressure



-Gold rebounded from losses after U.S. consumer confidence unexpectedly fell in February and manufacturing activity in China rose at its fastest pace in more than a decade.
-Despite Tuesday's decline in consumer confidence, U.S. data were generally better than expected since the beginning of the month, as reflected in an index that is at its highest level since April.
-As a result, Federal Reserve target rate futures peaked in September at about 5.42%, up from the current 4.50-4.75%, compared with less than 5% at the end of January.
Higher interest rates raise the opportunity cost of the trading instrument, putting pressure on gold prices

Gold breaks through a series of strong resistances, forming a "Double Bottom" reversal pattern
The price breaks through the uptrend line and the level of 1831, if the price gets above it, there is a huge upside potential to 1863.
On D1, price is testing the Fibonacci level of 0.382, but in a false-break format. The price movement into the long zone starts to form an impulse towards the 0.236 Fibonacci area (1878.8).
Here are some important levels for the price, from which the growth resumption is expected in the short and medium term: 1830 (1831.9), 1826
The short-term target is resistance 1845, the medium-term target is the liquidity zone 1863.

Regards, R. Linda!

1 Mar 2023

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