Tips for traders, 3 June 2021
With the recent announcement that 2021’s Federal Budget in the USA will increase 25%, it seems that inflation will continue. Higher than expected inflation is worrisome for some participants in markets and tends to be positive for gold, so funds are continuing to flow into the yellow metal.
From a technical perspective, the recent breakout from the flag has hinted that the price of gold could push to another higher level. If so, the target calculation based on the pattern would suggest a potential new all-time high. According to the calculation, the potential upward target would be $2,200-$2,460. Meanwhile, short-term trades with a bias for buying seem to make more sense unless there’s a significant shift in sentiment or data.