As trade tariffs “war” entered into relaxation mode, so the price of gold was easing during the previous week. The major event concerning trade tariffs during the previous week was the announcement from China's government that they are considering negotiations with the US Administration regarding imposed tariffs. Additional influx came also from better than expected US jobs data, in which sense, gold was trading with a modest negative sentiment during the week. The week started by testing the $3.350 short term resistance line, however, it ended at the level of $3.240.
The RSI turned away from the overbought market side, and ended the week at the level of 53. This level still does not represent a clear sign that the market is ready to take the turn toward the oversold market side. Moving averages of 50 and 200 days, without change, continue to move as two parallel lines with an uptrend.
Fundamentals have driven the price of gold to the ATH in a previous period, so fundamentals will continue to impact the price of gold also in the future period. Trade tariffs were the main driver, so as the trade war is settling down, the price of gold might ease also in the coming period. Gold is currently testing the level from the mid-April this year. In case that it is breached, then the next potential level for gold might be around $3.150. Certainly, it should be considered that the FOMC meeting is scheduled for May 7th, which might bring some volatility back on the market, considering current market sensitivity regarding potential Fed's rate cut. At this moment on charts, the price of gold has equal probabilities for a move both toward the up, and down side.
The RSI turned away from the overbought market side, and ended the week at the level of 53. This level still does not represent a clear sign that the market is ready to take the turn toward the oversold market side. Moving averages of 50 and 200 days, without change, continue to move as two parallel lines with an uptrend.
Fundamentals have driven the price of gold to the ATH in a previous period, so fundamentals will continue to impact the price of gold also in the future period. Trade tariffs were the main driver, so as the trade war is settling down, the price of gold might ease also in the coming period. Gold is currently testing the level from the mid-April this year. In case that it is breached, then the next potential level for gold might be around $3.150. Certainly, it should be considered that the FOMC meeting is scheduled for May 7th, which might bring some volatility back on the market, considering current market sensitivity regarding potential Fed's rate cut. At this moment on charts, the price of gold has equal probabilities for a move both toward the up, and down side.
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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.