Gold: some relaxation

11 พ.ย.

The implications of the US Presidential elections left its mark on the price of gold during the previous week. Namely, as President elect Trump was noting in a presidential campaign a potential to end conflicts in the Middle East, so the markets relaxed sentiment in expectations of further escalation of the ongoing geopolitical tensions. In line with USD strengthening, the price of gold had its largest weekly drop in the last five months. The lowest weekly level reached was $2.646, while the price of gold is ending the week at $2.683. It was a 1,8% weekly decline.

The RSI just started its course toward the oversold market side. The index finished the week at the level of 48, leaving some space for a further drop in order for a clear oversold market side to be reached. Despite the decline, moving averages of 50 and 200 days are still moving as two parallel lines with an uptrend, without an indication of a potential cross in the near term.

Markets will spend the week ahead digesting both US Presidential elections and Feds rate cut and macroeconomic overview. In this sense, some further relaxation for the price of gold is quite possible. Considering that during the previous time, the price of gold had a strong uptrend, there should not be expected some stronger move to the downside. The level of $2.650 might be tested, with some modest potential for the level of $2,6K. On the opposite side, there is some probability for the level of $2,7K, but with lower probability.