Gold: technical analysis

The vote on the new healthcare reform and the rejection of Obamacare ended in failure. Republicans were unable to secure enough votes in Congress. On the back of this news, gold is gaining in value, while the dollar is losing ground against most G-10 currencies.

The price of gold rose steadily last week by about 2.2%. Today (Monday, March 27, 2017), it broke above the consolidation that had been ongoing since Wednesday. The price per ounce exceeded $1,250 and is at its highest since February 28 this year.

In March, gold has been moving in an upward channel. The previous correction stopped precisely at the 50% internal retracement level according to Fibonacci's theory. The end of the February correction was also signaled by the Stochastic Oscillator, which took on heavily oversold values.

This month, each impulse is followed by a regular correction, and there are no signs of a change in sentiment for the time being. The nearest resistance on the way is the peak from the end of February at $1,263 per ounce. The upper limit of the triangle in which the yellow metal is trading also falls at the same point. This level is likely to become highly psychological, and breaking through it will open up the possibility of further gains for gold.

Gold chart (D1)

Gold chart (H1)

Arkadiusz Kłosiński
Mennica Skarbowa S.A.