Gold prices rose significantly in the last week and peaked at $1396.76 an ounce. Gold has made a significant upward correction, which can be directly correlated with the bullish trend of the EUR/USD cross. However, the daily chart is suggesting that a recent upward trend is losing steam and a bearish correction is impending. This recent activity has raised the stakes for traders. From here on, the forex and commodity markets will see very high volatility indeed.
• Below is the daily chart for gold by ForexYard .
• The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.
• Point 1: The Slow Stochastic indicates an impending bearish cross, signaling that the next move may be in a downward direction.
• Point 2: The Williams Percent Range has peaked at the 0 marker and has turned bearish; this means that there may actually be a strong level of downward pressure.
• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.
Gold Daily Chart