empty
 
 
23.09.2024 10:39 AM
XAU/USD: downward correction invites traders to buy?

This image is no longer relevant

Since early Monday, the US dollar has been picking up steam while gold is trading lower in parallel. The question is whether we should expect a further decline in the price of the yellow metal. Apparently, no. Its corrective decline may be seen by the markets as an invitation to buy, especially given the ongoing high geopolitical risks that are primarily driving central banks to amass physical gold. As long as geopolitical challenges persist, this sentiment on gold as a safe-haven asset will continue.

Technical picture and trading idea

The gold price is currently trading above the middle line of the Bollinger Bands, below the SMA 5 but above the SMA 14. The RSI is moving out of the overbought zone, and the Stochastic oscillator is doing the same.

If the metal settles above 2,612.25, this will encourage traders to open long positions on spot gold, with a target of 2,650.00.

Pati Gani,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $3000 more!
    In September we raffle $3000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback