GOLD can be a defensive asset, as geopolitical risks still highCaught in the twin grip of elevated US yields and a stronger USD, Gold may be on the defensive over the near term unless geopolitical risks still escalate.
Escalating geopolitical and trade risks are playing an increasingly supportive role in Gold prices, engineering rallies that are likely to stay high in 2024.
Gold Price Clinging to Highs Under $2'000. The bias remains bullish despite minor retreats.
A new higher high may activate further growth. Only a valid breakdown below the pivot point opens the door for a corrective phase.
The gold price resumed its growth today, reaching the $1,990 level.
The bias is bullish despite minor downside corrections. OANDA:XAUUSD returned higher even though the Dollar Index rallied after the US Flash Services PMI and Flash Manufacturing PMI announced expansion.
Gold has taken its position as a safe haven value asset. Over the past several years Gold trades on positive path, where short-term average (1yr SMA) still above long-term average (5yrs SMA) for a 6th year in a row, since Q1'18.
The main technical graph says, that potentially technical figure known as "Reversed Head and Shoulders" is in progress, with further upside price action in a case of return back, above $2'000 per ounce.
The main graph is for iShares Gold ETF AMEX:IAU that seeks to reflect generally the performance of the price of gold.