Today, during the Asian session, gold prices are relatively stable and are consolidating near the level of 1565.00, where the instrument decreased during an active decline on the eve.
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As expected, the precious metals market returned to growth after a short correction. Silver, being one of the main safe haven assets, is adding 4.2% to the January 23 low. At the moment, investor interest in the instrument is even higher than in gold. The percentage spread between gold and silver changes in favor of the latter by 1.5%.
The price may grow.
On the daily chart, an upward trend forms as the wave of the higher level C of (B), within which the local correction iv of C ended. Now, the fifth wave v of C is forming, within which the first wave of the lower level (i) of v has developed, and a downward correction is forming as the wave (ii) of v. If the assumption is correct, after the end of the correction, the price will grow to the levels of 1650.00–1700.00. In this scenario, critical stop loss level is 1515.11.
Gold is in a stable sideways trend and is in no hurry to decline, despite the relative strength of USD and other risky assets.
On the H4 chart, the instrument is trading at the lower part of Bollinger Bands, which is the key support level. The indicator is pointing down, and the price range is expanding, indicating a continuation of the downtrend. MACD histogram is in the negative zone keeping a strong sell signal. Stochastic entered the oversold area, so a strong buy signal can be formed in 1-2 days.