Gold: following market sentiment
Released US PCE data for August during the previous week, showed further weakening of the US inflation which increased sentiment among investors that the Fed might confidently further cut interest rates in the coming period. The US Dollar modestly weakened on the news, supporting the price of gold to move to higher grounds. In addition, geopolitical tensions in the Middle East are not slowing down, which was another booster for the price of gold during the week. The new ATH was reached at the level of $2.681, while the price of gold ended the week at the level of $2.657. Gold is currently up by some 29% for the year, which is its highest price shift for the last 14 years.
The gold continues to be traded in a highly overbought environment. The RSI was moving above the level of 70 during the week. This is an indication of a potential short term reversal in the coming period. Moving averages of 50 and 200 days continue their path as two parallel lines with an uptrend, without any indication of the slowdown in the coming period.
Current geopolitical scene as well as developments in the US economy will continue to support the price of gold, as a traditional hedge against uncertainties. Since it reached a new all time highest level and is moving within highly overbought territory, there is some probability for a short term reversal in the coming period. Still, some higher move to the downside should not be expected, where levels around $2,6K might be tested for one more time. Current environment is supporting the price of gold, which could put the price of gold to a new all time highest level.
The gold continues to be traded in a highly overbought environment. The RSI was moving above the level of 70 during the week. This is an indication of a potential short term reversal in the coming period. Moving averages of 50 and 200 days continue their path as two parallel lines with an uptrend, without any indication of the slowdown in the coming period.
Current geopolitical scene as well as developments in the US economy will continue to support the price of gold, as a traditional hedge against uncertainties. Since it reached a new all time highest level and is moving within highly overbought territory, there is some probability for a short term reversal in the coming period. Still, some higher move to the downside should not be expected, where levels around $2,6K might be tested for one more time. Current environment is supporting the price of gold, which could put the price of gold to a new all time highest level.
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.