Gold: softening sentiment

After the price of gold reached its new all-time highest level, the market softened a bit during the previous week. It came in anticipation of the US non farm payroll data, which were much better from market expectations. Good jobs data pushed the US Dollar to the higher grounds, leaving the price of gold with a modest volatility during the week. The price of gold was moving within a relatively low range, between levels of $2.669 down to $2.627. Although the US Dollar gained significantly during the week, the price of gold did not follow exactly negative correlation, but rather was put on hold. Analysts are commenting that bullish sentiment on gold still holds on the markets, which might be one of reasons why the price of gold continues to hold at historically highest levels.

The RSI reverted a bit to the downside, after a clear overbought market side was reached two weeks ago. Still, the indicator reached the lowest level at 66 and is not ready to start its path toward the oversold market side. Moving averages of 50 and 200 days continue to move as two parallel lines with the uptrend, without any indication on a potential cross in the near term period.

The gold is currently lagging behind its negative correlation with the USD. The ongoing tensions in the Middle East might be an additional reason why investors are still not ready to start the road toward the oversold market side. However, it could be expected that the price of gold would ease a bit in the coming period. Considering ongoing bullish sentiment, it should not be expected to make any significant move to the downside. As per current charts, the level of $2,6K might be tested again.