Tariffs-on, tariffs-off game of the US Administration brought a lot of uncertainty among inventors during the previous period. Two weeks ago the price of gold had some short relaxation in order to continue its move toward the targeted $3K levels, which occurred during the previous week. The price of gold started Monday around levels of $2.880, while the highest weekly level was reached on Friday's trading session at the level of $3.006.
With the latest move toward the upside, the RSI reached the level of 70, which is a clear overbought market side. Moving averages of 50 and 200 days continue to move as two parallel lines, without any indication that the cross might occur anytime soon.
From the perspective of technical analysis, the level of $3K is a significant milestone for the price of gold, as it perfectly reflects the long term development on charts. Namely, peaks from April and October 2024 make the perfect alignment with the $3K highs currently reached. Still, they show that the price could go a bit higher, at least until the $3.030, from where a short reversal might start. On a shorter time scale, there is the space for the price of gold to move a bit higher, but there is also an equal probability that it might start a short reversal. The FOMC meeting is scheduled for March 19th, where certainly some higher market volatility could be expected.
With the latest move toward the upside, the RSI reached the level of 70, which is a clear overbought market side. Moving averages of 50 and 200 days continue to move as two parallel lines, without any indication that the cross might occur anytime soon.
From the perspective of technical analysis, the level of $3K is a significant milestone for the price of gold, as it perfectly reflects the long term development on charts. Namely, peaks from April and October 2024 make the perfect alignment with the $3K highs currently reached. Still, they show that the price could go a bit higher, at least until the $3.030, from where a short reversal might start. On a shorter time scale, there is the space for the price of gold to move a bit higher, but there is also an equal probability that it might start a short reversal. The FOMC meeting is scheduled for March 19th, where certainly some higher market volatility could be expected.
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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.