Welcome to the Extreme Investor Network blog, where we provide unique insights and analysis on the latest trends in the stock market, trading, and Wall Street. Today, we take a look at the recent movements in gold, Bitcoin, and silver as they react to US inflation data and other economic factors.
Gold has been consolidating within a positive range following last week’s US inflation data, while Bitcoin is attempting to break above a six-month bull flag. Silver, on the other hand, is consolidating below the key level of $32.50, indicating price strength. With retail sales data on Thursday set to define the next move in these instruments, investors are keeping a close eye on the market.
In our technical analysis of gold (XAU), we see the market trading within a descending broadening wedge pattern following the release of the US CPI data. This bullish pattern formed after a rebound triggered by the CPI release, with gold prices finding support above a key trendline on the daily chart. While the recent rebound failed to break the $2,663 level, the overall outlook remains bullish.
The RSI is turning upward from the mid-level, suggesting the potential for another strong rally in gold prices. A break above the $2,685 level could initiate this rally, with the development of ascending channel and ascending broadening wedge patterns indicating further upward momentum in the gold market.
As geopolitical and economic uncertainties intensify, we expect gold, silver, and Bitcoin to continue their rally as investors seek safe-haven assets. Stay tuned to the Extreme Investor Network for more in-depth analysis and insights on the stock market and trading strategies.