After five straight weeks the price of gold continues to move to higher grounds. Certainly, the major contributor to such a development is the newly emerged geopolitical situation in the Middle East, which is fuelling investors with unrest. As the situation is slowly calming down, the price of gold is easing its push to the upside. During the previous week, another ATH has been reached at level of $2.430. Still, it was only on one occasion, while during most of the time, the gold was traded around $2.380. At the same time, the RSI is still moving within the strongly overbought momentum, without any indication that it might start a reversal soon. Moving average of 50 days still strongly diverges from its MA200 counterpart, also without any indication that convergence might start soon.
At this moment on charts, it is clear that the price of gold could not clearly break the level of $2.400. This means that the market is slowly exhausting itself for the move to the higher grounds. Certainly, it should be taken into account that any new news regarding the Middle East crisis could easily bring new funds into the gold market and push it toward more higher grounds. Still, if we take into account that there is currently a sort of stabilization, the price of gold might enter into a short reversal during the week ahead, but it should not be expected to make any sort of strong moves to the downside.
At this moment on charts, it is clear that the price of gold could not clearly break the level of $2.400. This means that the market is slowly exhausting itself for the move to the higher grounds. Certainly, it should be taken into account that any new news regarding the Middle East crisis could easily bring new funds into the gold market and push it toward more higher grounds. Still, if we take into account that there is currently a sort of stabilization, the price of gold might enter into a short reversal during the week ahead, but it should not be expected to make any sort of strong moves to the downside.
