Gold prices are currently trading within the Low range of 2,315.64 and 2,318.68. On the daily timeframe, gold price moves slightly below the middle band line and forms a small bearish candle. Bollinger bands appear to be narrowing, reflecting decreasing market volatility. The 50 MA indicator draws an ascending channel below the lower band line indicating an uptrend. Meanwhile, the RSI indicator points to level 55, meaning the price is above the uptrend level.
View attachment 7016
On the H1 timeframe, the price moves flat between the Bollinger band squeeze. The appearance of a Bollinger band squeeze indicates a low volatility market waiting for a breakout. In the short-term range, the price moves with a swing high of around $2331 and a swing low of around $2313. The 50 MA also draws a flat channel near the price reflecting a flat market. And the RSI indicator points to level 45, meaning the price is moving below the downtrend level in this time frame.
The decline in geopolitical tensions in the Middle East is suspected to have caused gold prices to be trapped in a consolidation phase. On the other hand, the Fed may not cut interest rates shortly, which is also a concern for analysts. Even though there are no signs of an escalation of war, geopolitical uncertainty still has the potential to loom large so that gold could rise quickly at any time.
View attachment 7016
On the H1 timeframe, the price moves flat between the Bollinger band squeeze. The appearance of a Bollinger band squeeze indicates a low volatility market waiting for a breakout. In the short-term range, the price moves with a swing high of around $2331 and a swing low of around $2313. The 50 MA also draws a flat channel near the price reflecting a flat market. And the RSI indicator points to level 45, meaning the price is moving below the downtrend level in this time frame.
The decline in geopolitical tensions in the Middle East is suspected to have caused gold prices to be trapped in a consolidation phase. On the other hand, the Fed may not cut interest rates shortly, which is also a concern for analysts. Even though there are no signs of an escalation of war, geopolitical uncertainty still has the potential to loom large so that gold could rise quickly at any time.
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