The price of gold under pressure – Now is the time to pay attention!

Gold price under pressure

In recent weeks, the price of gold has fluctuated around the 1,500 US dollar mark time and again. In the short term, the development in the trade dispute between the USA and China always had an impact on market sentiment. This has also been the case recently. It remains unclear when the verbal rapprochement between the two economic powers will lead to the signing of a deal – at least for an interim solution before a possible major trade agreement. But today, Thursday, we again heard conciliatory tones, this time from China. The Chinese Ministry of Commerce said that it wanted to gradually reduce the punitive tariffs.


US economy

The most recent economic data from the USA surprised rather positively. Above all, the figures on the business climate index from the American service sector strengthened analysts’ assessment that under these conditions there will be no further interest rate cuts in the USA for the time being – at least not this year. The next Fed meeting will take place on 10/11 December.


Chart technology

The gold price was quoted at 11 a.m. today at 1.485 US dollars per ounce (FOREX). This was equivalent to 1,341 euros. The silver ounce cost 17.58 US dollars (15.87 euros). Let us take a look at the chart technical situation of the euro gold price as of 6 November 2017 on the basis of US futures. Here, the gold price at the end of the day was EUR 1,349 at the level of the 50-day average.


Since reaching the all-time high at the beginning of September, the price line has been within a falling wedge. The resistance of 1,360 euros is now of particular importance. On the underside, the mark of serves as an important short-term support. The sentiment (market sentiment) lies with a RSI of 48 (relative strength index) in the neutral range. Outlook: A breakout from the wedge to the north would generate a strong buy-signal from a technical viewpoint. In the negative scenario, a test of the 1,300 Euro threshold would very quickly be on the agenda and possibly a further sell-off into the 1,270 Euro range.