Saturday, 15 April 2017

XAU/USD higher

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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