The newly emerged Middle East tensions pushed investors back into gold, as a safe-haven asset. The price of gold started the previous week in a relatively calm mood, however, the geopolitical tensions pushed the price of gold toward new highs, reaching the level of $3.443 shortly on Friday trading session, however, is ending the week modestly lower, at $3.432. The all time highest level stays close to current levels at $3.497, reached April 22nd this year. Analysts from Goldman Sachs revised their forecast for the price of gold to $3.700 at the end of this year, and $4K for the next year. The rationale for a revision was a strong demand for gold coming from central banks.
The RSI took the uptrend during the week, ending it at the level of 61 on Friday. At this moment on charts, it seems like investors are eyeing the overbought market side for one more time. The MA50 continues to be the supporting line for the price of gold. Both MA50 and MA200 continue to move as two parallel lines with an uptrend, without an indication that the course might be changed anytime soon.
As long as geopolitical tensions are making investors unrest, the price of gold will head toward the upside. The uncertainty is driving the demand for safe-haven assets. However, charts are pointing to the possibility of a short term reversal for the price of gold. It should not expect some significant reversal, but rather till the level of $3.380. Also, the current level at $3.430 is the one to watch, considering that the same highs gold reached at the beginning of May and around 20th of April this year. In case that current level is pushed toward the upside, then it should be expected that the price of gold will reach a new all time highest level in the coming period. It should also be considered that the FOMC meeting is scheduled for Wednesday, next week, which might imply some higher volatility. It is not expected that the Fed will cut interest rates, but investors are set to hear the Feds view on macroeconomic projections.
The RSI took the uptrend during the week, ending it at the level of 61 on Friday. At this moment on charts, it seems like investors are eyeing the overbought market side for one more time. The MA50 continues to be the supporting line for the price of gold. Both MA50 and MA200 continue to move as two parallel lines with an uptrend, without an indication that the course might be changed anytime soon.
As long as geopolitical tensions are making investors unrest, the price of gold will head toward the upside. The uncertainty is driving the demand for safe-haven assets. However, charts are pointing to the possibility of a short term reversal for the price of gold. It should not expect some significant reversal, but rather till the level of $3.380. Also, the current level at $3.430 is the one to watch, considering that the same highs gold reached at the beginning of May and around 20th of April this year. In case that current level is pushed toward the upside, then it should be expected that the price of gold will reach a new all time highest level in the coming period. It should also be considered that the FOMC meeting is scheduled for Wednesday, next week, which might imply some higher volatility. It is not expected that the Fed will cut interest rates, but investors are set to hear the Feds view on macroeconomic projections.
Related publications
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.
Related publications
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.