FX.co ★ Technical review for XAU/USD: gold will rally, but it will be limited

Gold remains in a narrow range, at 1827.75-1866.70. The reason is the high volatility in the market, as well as the uncertainty on whether the world economy will enter a recession.

technical picture:

The quote is above the middle line of the Bollinger indicator, above the SMA 5 and SMA 14. The moving averages have crossed and are giving a signal to buy, while the relative strength index (RSI) has crossed the 50% level and also signals the possibility of further price increases. The stochastic indicator, meanwhile, is in the overbought zone.

Possible dynamics:

A rise and consolidation above 1850.20 may provoke further limited price increase to 1866.70.