For the second week in a row the price of Gold has lost correlation with USD, amid unfortunate developments in the Middle East. This represents the third consecutive week finished in green for Gold. As per analysts specializing in trading metals, if the Middle East conflict escalates further, there is a high probability that the price of Gold might reach even higher grounds in the coming period.
At the beginning of the previous week, the price of Gold reverted a bit to the downside, and to the level of $1.950. However, further negative geopolitical news have pushed the price to the upside, and the Gold has finished the week at level of $2.006 as of Friday`s trading session. RSI reached a clear overbought side. Moving average of 50 days has started its convergence toward the MA200, but there is still a long distance between lines, in order to mark a cross.
Under the normal market circumstances, the RSI at level of 73 would be an indication of potential short term reversal for the price of Gold. However, this time it should be taken with caution, considering that market moves are implied by the geopolitical crisis. In case of its further escalation, the price of Gold might reach higher grounds from $2K. If markets calm down, then the reversal should be expected, at least to the level of $1.980, down to $1.950.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for October, ISM Manufacturing PMI for October, Fed Interest Rate Decision, Non-farm Payrolls for October, Unemployment Rate for October, ISM Services PMI for October
At the beginning of the previous week, the price of Gold reverted a bit to the downside, and to the level of $1.950. However, further negative geopolitical news have pushed the price to the upside, and the Gold has finished the week at level of $2.006 as of Friday`s trading session. RSI reached a clear overbought side. Moving average of 50 days has started its convergence toward the MA200, but there is still a long distance between lines, in order to mark a cross.
Under the normal market circumstances, the RSI at level of 73 would be an indication of potential short term reversal for the price of Gold. However, this time it should be taken with caution, considering that market moves are implied by the geopolitical crisis. In case of its further escalation, the price of Gold might reach higher grounds from $2K. If markets calm down, then the reversal should be expected, at least to the level of $1.980, down to $1.950.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for October, ISM Manufacturing PMI for October, Fed Interest Rate Decision, Non-farm Payrolls for October, Unemployment Rate for October, ISM Services PMI for October
