Gold has been increasing recently since couple of months due to many factors, one of the factors include China is increasing it’s reserves every month. Last month, Chinna stopped buying from the Gold. Profit booking happened from the peak, it’s retracing lower now.
Let’s have a quick look at the technicals.
credits: curious community
Bullish Scenario:
If the price holds above 50 day moving average which is 71k, & starts moving upward with increased volume, it could retest & cross the recent high 74,000.
Bearish Scenario:
If the price breaks below 70k level with strong volume, it could slide further downside towards 200-day moving average around 66000.
Consolidation:
If the price continues to hover around the 50 day moving average without any significant movement, it might indicate a consolidation phase before the next major move.
Key levels to watch:
Support:
50-day moving average (71,000)
200-day moving average (66,000)
Resistance:
Recent High: 74,000
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