“What a beautiful chart” could be a summary of Gold price developments during the previous week, however, it was not on happy grounds. Increased geopolitical tensions and fear of potential increase in inflation due to surge in oil prices, have pushed the price of Gold on Friday`s trading session from $1.870 up to $1.932, where the price is ending the week. It was an increase of more than 3% in a single day, and certainly, one of the best trading days of this year. It also shows that investors are still perceiving Gold as a safe-haven asset during the time of high uncertainties.
The RSI index was pushed to the level of 63, but it has still not reached the clear overbought side of the market. This leaves some space for the price of Gold to move a bit more to the upside, until the overbought side is clearly reached. Moving average of 50 days started its modest convergence toward the MA 200, but it is too early to note that there is a potential for further movements to the upside and potential cross.
As long as geopolitical tensions continue to bring uncertainties to the markets, there is a higher chance that the price of Gold might continue to rise further. However, taking into account the significant 3% move to the upside on Friday`s trading session, some short reversal might be ahead. Still, it should not be expected that the price of Gold will return to the levels from the start of the previous week. The $1.900 level might be shortly tested, but RSI is pointing to a potential move to the upside. If the level of $1.930 is broken to the upside, then $1.950 might easily become the next target of Gold in the week ahead.
Important news to watch during the week ahead are:
USD: Retail Sales for September, Building Permits preliminary for September, Fed Chair Powell speech
The RSI index was pushed to the level of 63, but it has still not reached the clear overbought side of the market. This leaves some space for the price of Gold to move a bit more to the upside, until the overbought side is clearly reached. Moving average of 50 days started its modest convergence toward the MA 200, but it is too early to note that there is a potential for further movements to the upside and potential cross.
As long as geopolitical tensions continue to bring uncertainties to the markets, there is a higher chance that the price of Gold might continue to rise further. However, taking into account the significant 3% move to the upside on Friday`s trading session, some short reversal might be ahead. Still, it should not be expected that the price of Gold will return to the levels from the start of the previous week. The $1.900 level might be shortly tested, but RSI is pointing to a potential move to the upside. If the level of $1.930 is broken to the upside, then $1.950 might easily become the next target of Gold in the week ahead.
Important news to watch during the week ahead are:
USD: Retail Sales for September, Building Permits preliminary for September, Fed Chair Powell speech
