Gold remains above $ 3,025 with a positive bias, but lacks a strong bullish conviction. The demand for safe haven is supported by worries about the coming mutual rate announcement of US President Donald Trump on 2 April, as well as additional rates for Venezuela and potential retaliation measures against important trading partners, which contributes to market unity and the Federal Reserve (FED) Outlook for the end of the year.
However, profits are limited by renewed US dollar strength and a generally positive riskiness in financial markets. Gold prices are also influenced by weak American consumer confidence, signaling risks. In the meantime, China’s economic stimulus increases the risk sentiment, supports shares and limit Gold’s upward potential.
From the point of view of technical analysis, the price continued its bullish momentum and found sufficient resistance on the upper tire of the Bollinger tires that push it down somewhat and currently just above $ 3,000 actions. The advancing averages confirm the bullish momentum in the market, while the stochastic oscillator has fallen just below the extreme overbought levels.
The Bollinger tires are still somewhat expanded, which shows that the volatility is still there and the potential has even higher. In the case of a Bearish correction in the market, which has no real evidence or signs to happen soon, the first area of technical support can be found around $ 2,950, which is the 161.8% of the Fibonacci extension level and the area of price reaction at the end of February.
This article has been submitted by Anthemistokleous, an analyst at ExentExent.
The opinions in this article are personally for the writer. They do not reflect those from Exness or FX -Rijk.