Gold In A Bullish Triangle; Buy Lower
By Kira Iukhtenko
Gold remains an attractive investment in the current unstable global environment. The bullion’s price remains in a consolidative mode since mid-February. From the technical viewpoint, this a triangle that is expected to be broken to the upside in the coming weeks.
Key resistance is seen at 1,270. A break higher will likely trigger another 200 points rally to the North. Major support is now seen at 1,210. We’d use any correction lower for opening new longs on the yellow metal.
Gold is traditionally used as a hedge for rising inflation, so in a prospect of 1-2 years the price of this asset could recover significantly from the current low levels.