The GOLD price formed a weekly double bottom at $1620.00 which could see the price reverse and head higher.
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The price of Gold has traded lower from the start of the year due to the Federal Reserve hiking interest rates. This caused the USD to strengthen which didn’t help the price of Gold. However, recent headlines from Federal Reserve members have put a halt to further aggressive hikes from the Federal Reserve. Last Friday it was mentioned that the Fed could slow down the tightening cycle now and hike rates less and less until they reached their desired rates.
The price of GOLD has come into the key $1620.00 lows as expected before this news saw the price reverse and move higher. The weekly chart shows the price formed a rejection of the previous lows closing with a bullish candle, this could see a move back to the previous highs and neckline of the double bottom pattern at $1705.00.
If we go down to the 4hr time frame we can see the price has formed a new high. Currently the price is forming a higher low which suggests that buyers are looking to push the price higher. If the price retests the lows and buyers come in we could expect another move higher.
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