The price of gold continues its way up to higher grounds, supported by high uncertainty caused by trade tariffs imposed by the US Administration to the rest of the world countries. Certainly, the most important tariffs are related to China, as the US major trade counterparty, which is currently in a wait-and-see phase. The price of gold reached a new all time highest level at $3.350 on Thursday, after which, the price reverted just a bit. Analysts are noting that this could be the profit-taking moment on the market.
The RSI shortly reached the level of 50 two weeks ago, however, reverted again back toward the higher grounds. In the past week, the RSI again headed toward the overbought market side, closing the week at the level of 72. There is still no change with MA lines. Both MA 50 and MA 200 are moving as two parallel lines with an uptrend, without any signal that the potential change of trend might come anytime soon.
Analysts are pointing that there might be some short reversal of the price of gold in the coming period, as it reached a fresh new all time highest level. They are pointing that this reversal might be a reflection of a profit=taking. Such a scenario might be possible in the week ahead, but some higher reversal to the downside should not be expected. Fundamentals are the ones which have been driving the price of gold for some time in the past, and they will continue to do it in the future. As long as the topic of tariffs is a major narrative of the US Administration, the price of gold will be supported by it. Considering that gold is currently moving in an uncharted territory, new ATHs are quite possible also in the future.
The RSI shortly reached the level of 50 two weeks ago, however, reverted again back toward the higher grounds. In the past week, the RSI again headed toward the overbought market side, closing the week at the level of 72. There is still no change with MA lines. Both MA 50 and MA 200 are moving as two parallel lines with an uptrend, without any signal that the potential change of trend might come anytime soon.
Analysts are pointing that there might be some short reversal of the price of gold in the coming period, as it reached a fresh new all time highest level. They are pointing that this reversal might be a reflection of a profit=taking. Such a scenario might be possible in the week ahead, but some higher reversal to the downside should not be expected. Fundamentals are the ones which have been driving the price of gold for some time in the past, and they will continue to do it in the future. As long as the topic of tariffs is a major narrative of the US Administration, the price of gold will be supported by it. Considering that gold is currently moving in an uncharted territory, new ATHs are quite possible also in the future.
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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.