Wednesday, August 30, 2017 12:56:47 PM
XAU/USD: Short Review & Forecast
A new round of geopolitical tensions rapidly raised the value of Gold to its 10-month maximum.
As expected, the prices for Gold began to rise rapidly and exceeded the psychological level of $1,300, even earlier than we hoped. Gold started to rise from August 25, according to the results of the economic symposium in Jackson Hole where Federal Reserve head Janet Yellen didn't make any statements regarding the further monetary policy in the United States. This disappointed investors who expected to hear some confirmation of a tightening monetary policy. The U.S currency fell and reached the level of January 2015 against the Euro. Thus, the value of Gold has also increased due to the weakened USD.
This week the Gold got another incentive for strengthening based on increased geopolitical tensions. Yesterday North Korea successfully ran a ballistic rocket that flew over Japanese territories and landed in the Pacific Ocean, near the Japanese island Hokkaido. The demand for safe assets immediately increased then. As a result, the price for Gold reached $1,322, but then stabilized to the level of 1,309 dollars, which is the highest price since October 2016.
After yesterday's peak at $1,322, the line of resistance has slightly shifted up. After the new round of geopolitical tensions we can expect a stabilizing of the prices for Gold as well as of the demand for safe assets. In the near future the price for Gold could retreat back to the level of $1,300 - $1,305. The rates will continue in the frames of the upward trend which was formed a few months ago. In this situation the most optimal course of action would be the short deals, which is also confirmed by the MACD oscillator.
A new round of geopolitical tensions rapidly raised the value of Gold to its 10-month maximum.
As expected, the prices for Gold began to rise rapidly and exceeded the psychological level of $1,300, even earlier than we hoped. Gold started to rise from August 25, according to the results of the economic symposium in Jackson Hole where Federal Reserve head Janet Yellen didn't make any statements regarding the further monetary policy in the United States. This disappointed investors who expected to hear some confirmation of a tightening monetary policy. The U.S currency fell and reached the level of January 2015 against the Euro. Thus, the value of Gold has also increased due to the weakened USD.
This week the Gold got another incentive for strengthening based on increased geopolitical tensions. Yesterday North Korea successfully ran a ballistic rocket that flew over Japanese territories and landed in the Pacific Ocean, near the Japanese island Hokkaido. The demand for safe assets immediately increased then. As a result, the price for Gold reached $1,322, but then stabilized to the level of 1,309 dollars, which is the highest price since October 2016.
After yesterday's peak at $1,322, the line of resistance has slightly shifted up. After the new round of geopolitical tensions we can expect a stabilizing of the prices for Gold as well as of the demand for safe assets. In the near future the price for Gold could retreat back to the level of $1,300 - $1,305. The rates will continue in the frames of the upward trend which was formed a few months ago. In this situation the most optimal course of action would be the short deals, which is also confirmed by the MACD oscillator.
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