Gold: pricing uncertainty
The price of gold for one more time missed its negative correlation with the US Dollar and moved toward the higher grounds. During the previous year such moves were strongly influenced by the geopolitical instability, however, as analysts are noting, this time it was induced by the uncertainty related to the new US Administration. Even the better than expected US jobs data and further strengthening of the US Dollar could not diminish the investors' fear coming from uncertainty of the moves which the new US Administration will impose after stepping on the scene on January 28th. This is how a need for a safe-haven metal was supported.
The price of gold started the previous week around the $2,6K support line, and moved further toward the higher grounds, until the highest weekly level at $2.690 reached on Friday. The RSI also took the up trend, moving currently around the level of 60. This is indication of a higher probability that the price of gold could move further higher, until the clear overbought level is reached. The moving average of 50 days continues to diverge toward the MA200, indicating a potential for a cross in the future period.
It is a well known fact that the market does not like uncertainty. The price of gold could be pushed further to the higher grounds in the coming period, as long as investors feel the urge for safe-haven assets. The RSI shows a potential for higher grounds until the clear overbought side is reached. On a downside, the level of $2.650 could be shortly tested, however, at this point on charts, there is no indication that the price of gold could return back toward the 2.6K support line in the week ahead.
The price of gold started the previous week around the $2,6K support line, and moved further toward the higher grounds, until the highest weekly level at $2.690 reached on Friday. The RSI also took the up trend, moving currently around the level of 60. This is indication of a higher probability that the price of gold could move further higher, until the clear overbought level is reached. The moving average of 50 days continues to diverge toward the MA200, indicating a potential for a cross in the future period.
It is a well known fact that the market does not like uncertainty. The price of gold could be pushed further to the higher grounds in the coming period, as long as investors feel the urge for safe-haven assets. The RSI shows a potential for higher grounds until the clear overbought side is reached. On a downside, the level of $2.650 could be shortly tested, however, at this point on charts, there is no indication that the price of gold could return back toward the 2.6K support line in the week ahead.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.