Gold is Forming a Rising Wedge Pattern
Thierry Laduguie | Mar 28, 2024 10:11
Gold prices have been on a tear, reaching record highs as investors flock to the precious metal. This surge is driven by a confluence of factors, with hopes of lower interest rates in the US playing a leading role.
The Federal Reserve's recent dovish shift has fueled market expectations for rate cuts as early as June. Lower interest rates typically make gold, a non-interest-bearing asset, more attractive compared to other investments like bonds. With potentially lower returns elsewhere, investors are turning to gold as a safe haven.
Adding fuel to the fire are growing concerns about a global recession. Europe's recent dip into recession has many worried about a similar fate for the US. Gold historically thrives during economic downturns, as its perceived stability and value retention make it a popular hedge against uncertainty.
This combination of potential rate cuts and recessionary fears is propelling gold to new highs. Whether the rally continues depends heavily on the future actions of the Fed and the trajectory of the global economy. However, one thing is clear: gold is currently basking in the spotlight as a safe haven for investors.
Wave (2) of a long term advance ended at 1810. The next move is wave (3) up in five waves [1,2,3,4,5], wave 1 is still in progress. Wave 1 is a rally in five waves [iC,iiC,iiiC,ivC,vC] and wave iC is in three waves, this suggests wave 1 will be a rising wedge. In this pattern wave iiiC is also in three waves and we have three waves [(a),(b),(c)]. Wave iiiC is probably complete, gold should pullback near 2120 to complete wave ivC. In the rising wedge pattern wave ivC overlaps wave iC. The next move is wave vC up, the target is 2250.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.