“Safe-haven” asset of gold still pumping in great volumes
On Sunday 19th of March, UBS agreed to buy Credit Suisse for $3.23 billion in a deal backed by a massive Swiss guarantee of around SFr9 billions but only after UBS has borne the first SFr5 billion of losses on a certain portfolio of assets. Even after this event gold prices kept rising reaching the highest level since mid April of last year. Investors and traders don’t seem convinced that the recent moves by authorities can put a stop to the banking system fallouts, so it could take some time for gold to reverse its current bullish trend. The fragile environment will yet to be tested after economic data coming from the US about the FED’s interest rate decision later this week.
‘ The recent aggressive rally is slowing down as the market is waiting the economic data from the FED later this week in order to get a hint on future developments on monetary policy and how it would affect the Dollar and its pairs , gold included.’ said Antreas Themistokleous, an analyst at Exness
From the technical standpoint the price is trading slightly below the upper band of Bollinger bands indicating that high volatility is still valid in the market for gold. The Stochastic oscillator is recording extreme overbought levels but this is somewhat “inaccurate” in cases of high volatility. The 50 day moving average is trading above the 100 day moving average further validating the strong bullish momentum that has built up in the market. For the time being there are no signs of a correction to the downside but this can change rapidly depending on the developments of the banking environment in the following days.
In any case the next level of resistance seems to be laying around the $2,000 mark which consists of the psychological resistance of the round number and is also an inside resistance area since early March of last year. In the event of a correction to the downside in the following sessions we might see some support around the $1,950 price area which is the last area of price reaction since late January 2023.
‘ The recent aggressive rally is slowing down as the market is waiting the economic data from the FED later this week in order to get a hint on future developments on monetary policy and how it would affect the Dollar and its pairs , gold included.’ said Antreas Themistokleous, an analyst at Exness
From the technical standpoint the price is trading slightly below the upper band of Bollinger bands indicating that high volatility is still valid in the market for gold. The Stochastic oscillator is recording extreme overbought levels but this is somewhat “inaccurate” in cases of high volatility. The 50 day moving average is trading above the 100 day moving average further validating the strong bullish momentum that has built up in the market. For the time being there are no signs of a correction to the downside but this can change rapidly depending on the developments of the banking environment in the following days.
In any case the next level of resistance seems to be laying around the $2,000 mark which consists of the psychological resistance of the round number and is also an inside resistance area since early March of last year. In the event of a correction to the downside in the following sessions we might see some support around the $1,950 price area which is the last area of price reaction since late January 2023.