The implementation of Trump's politics is leaving lumpy
tracks and is providing uncertainty on markets, which should be considered as
an important upside risk for gold. The confidence in the U.S. economy is seen
boosted but with no clear and real actions and stronger hard data. The market
sentiment might shift and lead the risky assets lower, while supporting the ultimate safe
haven.
Last week Gold moved up
significantly higher, closed at $1286.65 but has entered in consolidation mood
ahead of Easter Holidays.
Technical indicators on the
four-hour time frame are showing extreme overbought conditions. RSI is located
at 70 level and is indicating bullish momentum. Stochastic has retreated from
the extreme overbought area, but yet is above 80 mark.
Gold has stopped its upward
way below $1300, but it is very likely bulls to continue their march after the holidays.
Strong resistance is located
at $1307 and this level should be considered as a possible short term
exhaustion point.
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