Currently, at $1,312, the precious metal, gold, is trading at an 8-month high. Back in December, when it was trading at $1,225, I had predicted high chances for gold to move higher.
Can this momentum last? Speaking from a technical perspective and looking at the Gold ETF SPDR, the world’s largest ETF backed by gold, the Relative Strength Index is on the verge of entering the overbought zone. Last time the price entered this zone was a few weeks ago, the price started to consolidate and then retracted. We may see the same trend again.
The odds remain in favour of gold to move higher. The dollar index’s weakness could also continue to provide enough tailwind for gold’s upward momentum.
Goldplat plc (LON:GDP) is an AIM-listed, profitable gold recovery services company with two market leading operations in South Africa and Ghana. The Company also has a small gold mining and exploration portfolio in Kenya, Ghana and Burkina Faso.