There is a variety of elements moving gold price currently. Bullion has fallen from a 3-week-high of $1,530 after the announcement of new agreement between the US and Japan and after Donald Trump said that a deal with China could be reached sooner than expected. But the rally was also curbed by the strengthening of the greenback, with EUR/USD close to another test at 1.09, while the dollar index is now above 98.5. There are however some supportive elements. Firstly, the risk of impeachment against Donald Trump could be one of them. Also, the psychological threshold of $1,500 is still holding prices, in a scenario where central banks are still buying the precious metal. Moreover, any corrections of the stock market could give further fuel to the rally already seen in the last few months.
From a technical point of view, we have a mixed scenario, as the long-term trend remains bullish, while in the short-term prices are in a lateral trading range between $1,477 and $1,555, with an intermediate resistance placed at $1,532. Only the break-up of one of these levels would make space for further moves in this “wait and see” environment, where investors seem to have priced all central bank decisions so far and are now waiting for other market drivers.
