Gold: escape from tariffsThe market optimism holds, but comments related to tariffs are still bringing some unrest among investors. Although this unrest is currently not as strong as in April this year, still, some investors prefer to keep part of their funds in the safe-haven assets. News regarding trade tariffs during the previous week include 35% tariffs on imports from Canada, 50% tariffs on imports from Brazil, and 50% tariffs on copper imports. The latest news posted on Saturday includes 30% tariffs on goods from Europe and Mexico. Weekend information was still not reflected in the market price of the gold, implying that the Monday trading session might start with further move to the upside.
The price of gold gained during the previous week, starting around the level of $3.285 with Friday's strong push, ending the week at $3.355. At this moment, the RSI modestly passed the 50 level, closing the week at 53. The MA50 continues to slow down divergence from MA200, but the potential cross is still not in store, considering the significant distance between two lines.
When it comes to the price of gold in the week ahead, tariffs will again be the ones to shape investors sentiment. At this moment, technical analysis is pointing potential for moves toward both sides. If Monday's trading session starts with a move toward the upside, then it will most probably continue for the rest of the week. The next resistance line stands at $3,4K, which could be tested. However, there is also some probability for a short price correction, where the level of $3,3K might be tested for one more time, eventually $3,280.
