XAU/USD expects appreciation for this quarter due to the geopolitical uncertainty combined with higher oil and soft commodity prices, creating the right uptrend for gold. In addition, US and Iranian political and military escalation, following the US air strike which killed the Iranian general, gave the market the excuse to look for the safe-haven assets.
The XAU/USD remains in an uptrend mood (1361.00 trend line) with the closest target rate at 1589.05. A break above the 1589.05 could possibly push the pair as high as 1662.30. In contrast, the first support is found at 1450.00 and 1379.40 respectively. If the price breaks below the 1379.40 level, it could possibly force the pair as low as 1364.00. The RSI (W) remains at the overbought territory.
Source: Exclusive Capital
What Is Relative Strength Index – RSI?
The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.
What is the Commodity Channel Index (CCI)?
Developed by Donald Lambert, the Commodity Channel Index (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. It is also used to assess price trend direction and strength. This information allows traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.
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