Gold: a brand new ATH
Wakening of the US Dollar on the expectations that the Fed might make its first rate cut in September this year, after lower than expected inflation data in July, was the main driver of the price of gold during the previous week. The price of gold rallied to the new all time highest level, reached on Friday, at $2.507.
During the previous period, the price of gold found a strong support at the level of 2.4K. Since July the price of gold was attempting to breach this line to the downside, but without success. However, during the same period, the market was also trying to push the price to the higher grounds, however, again was left without strength. This is why a break to the higher grounds means a significant milestone for the price of gold. The RSI reached the level of 65 on Friday, but still did not manage to cross the overbought market side. This leaves some space for a further surge in price in the coming period. Moving averages of 50 and 200 days continue to move as two parallel lines with an uptrend, without any indication that the cross might come anytime soon.
A fresh new ATH for fold means that it will seek now the new equilibrium level. The RSI is indicating that the price could go a bit higher from current levels, until the clear overbought market side is reached, from where the short reversal comes. However, after such a strong move, which occurred on Friday, the market might start the week ahead in a more relaxed mode, in which sense, some short reversal might be possible. As per current charts, it should not be expected to make any significant move to the downside, rather somewhere around 50 pips, from current levels.
During the previous period, the price of gold found a strong support at the level of 2.4K. Since July the price of gold was attempting to breach this line to the downside, but without success. However, during the same period, the market was also trying to push the price to the higher grounds, however, again was left without strength. This is why a break to the higher grounds means a significant milestone for the price of gold. The RSI reached the level of 65 on Friday, but still did not manage to cross the overbought market side. This leaves some space for a further surge in price in the coming period. Moving averages of 50 and 200 days continue to move as two parallel lines with an uptrend, without any indication that the cross might come anytime soon.
A fresh new ATH for fold means that it will seek now the new equilibrium level. The RSI is indicating that the price could go a bit higher from current levels, until the clear overbought market side is reached, from where the short reversal comes. However, after such a strong move, which occurred on Friday, the market might start the week ahead in a more relaxed mode, in which sense, some short reversal might be possible. As per current charts, it should not be expected to make any significant move to the downside, rather somewhere around 50 pips, from current levels.
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