Moreover, political uncertainty adds a low support for gold. The efficiency of the Trump administration could avoid markets and delay economic growth. A liquidity nug can cause a correction, especially with US shares that act in high valuations. A weakening dollar and reduced inflow of the treasury would further improve the attractiveness of gold. Investors can turn to gold as a safe port active if economic instability persists.
Important economic indicators will be the market this week. US BBP data, consumer confidence and the Core PCE price index have a direct influence on US dollars and gold prices. Traders and investors must follow these reports closely on possible market movements.
Golden (XAU) Technical analysis
Gold Daily Chart – Dun Range
The daily graph for gold shows that the price has reached the orange zone of $ 2,900 – $ 3,000 and consolidates to stabilize at higher levels. Despite the strong resistance zone, the price did not fall quickly. Instead, it stabilizes for further profit. However, the overbought conditions observed using the RSI indicate that the price can correct lower before a strong movement is higher. If the price the $ 2,950 – $ 3,000 zone cannot break and begins to correct lower, the level of $ 2,800 will be strong support.