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FX.co ★ Technical review for XAU/USD: there is a chance for growth, but it will be limited

Technical review for XAU/USD: there is a chance for growth, but it will be limited

Spot gold found support at 1810.00, after falling yesterday. Growth was mainly driven by the growing demand in stock markets, as well as the weakening in dollar. It is likely that investors have already taken into account the possible 0.50% rate hike of the Fed in June, which may lead to the closing of short positions in the stock markets and profit-taking in dollar. That situation will provoke a local strengthening in gold.

technical picture:

The quote is below the middle line of the Bollinger indicator, above the SMA 5, but under the SMA 14. Meanwhile, both the relative strength index (RSI) and stochastic indicator are out of the oversold zone and are rising.

Possible dynamics:

Climbing above 1830.65 will prompt a further growth to 1853.00.

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Technical review for XAU/USD: there is a chance for growth, but it will be limited

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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