Gold is halfway to an all-time high

12:36 11 November 2021

The price of gold broke an important resistance zone of 1833 yesterday, after a high print of the US inflation of 6.2% that is the highest since 1990. High inflation brings concerns about higher interest rates sooner than expected. On the other hand, the structure of the inflation may show that it is not temporary as suggested by the Fed officials. High and persisting inflation is good for the gold bulls due to concerns about losing the value of money.

We can notice on the chart that the gold is halfway to an all-time high, looking from the perspective of recent correction from August 2020 to March 2021. The price broke the major downward trend line and tested another one with 50.0 Fibonacci retracement of the mentioned downward wave. After possible breaking, the way to 1900 will be open. On the other hand, a sharp gain of yields may subdue rally on gold, especially when a communication from the Fed will strengthen. Sellers should defend resistance at 50.0 Fibo and buyers want to stay above 1833.

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back

Join over 1.6 Million investors from around the world