Gold: not ready for a correction?
The price of gold continued its rally toward the higher grounds during the previous week. Although the US Dollar was gaining in strength, the price of gold was only modestly trying to catch up with the negative correlation, modestly dropping on Friday's trading session. During the whole week, the price of gold was testing the 2.5K support line to the downside, but without success. The trading range was within levels of $2.525 down to $2.495. The gold is ending the week at the level of $2.503.
The RSI was following the sentiment of the market, moving a bit to the downside, ending the week at the level of 58. There is currently no indication that the market is ready to take the course toward the oversold market side. For several months now, moving averages of 50 and 200 days are moving as two parallel lines without any indication that the cross, and potential change of the trend, might occur anytime soon.
Analysts are noting a weaker demand for gold coming from China, with Shanghai positioning in gold reaching the record highs. In this sense, they are noting a long-term long positioning. However, in the short term, there might be some potential for short term fluctuations and corrections in the price of gold. Charts are pointing to the same. Currently, there is a potential for a short term price reversal toward the levels around $2.450. It is unclear whether the price of gold might take a week or two in order to reach this level. Probability for lower levels is not indicated on charts. On the opposite side, there is potential that the price of gold will continue to test the current 2.5K level toward the higher grounds.
The RSI was following the sentiment of the market, moving a bit to the downside, ending the week at the level of 58. There is currently no indication that the market is ready to take the course toward the oversold market side. For several months now, moving averages of 50 and 200 days are moving as two parallel lines without any indication that the cross, and potential change of the trend, might occur anytime soon.
Analysts are noting a weaker demand for gold coming from China, with Shanghai positioning in gold reaching the record highs. In this sense, they are noting a long-term long positioning. However, in the short term, there might be some potential for short term fluctuations and corrections in the price of gold. Charts are pointing to the same. Currently, there is a potential for a short term price reversal toward the levels around $2.450. It is unclear whether the price of gold might take a week or two in order to reach this level. Probability for lower levels is not indicated on charts. On the opposite side, there is potential that the price of gold will continue to test the current 2.5K level toward the higher grounds.
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