The price of gold has advanced above $1930 this trading week and the current price stands around $1929. Gold has continued to trade in an uptrend as the COVID-19 pandemic continues to dominate the financial markets.Fundamental analysis: The scenario for the price of gold could be even better
Gold is considered a safe-haven asset and the price of gold has advanced in the wake of the coronavirus crisis as investors look for safer places to invest their money. Risk aversion will likely prevail at the beginning of the next trading week which is positive for the price of gold.
The attention of investors is focused currently on the US stimulus aid package negotiations and the upcoming presidential elections. According to some analysts, gold is overbought currently and popular sentiment around this precious metal has grown greedy and euphoric.
Despite this, the scenario for the price of gold could be even better as the “dovish” Fed decision continues to pressure the US dollar. The price of gold is also supported by the news that the House of Representatives passed a $2.2 trillion coronavirus relief bill on a party-line vote.
Gold price is expected to continue to be supported and could actually accelerate to the upside this October if the dollar continues to weaken.Technical analysis: Gold price is in the “buy” zone
The price of gold has continued to trade in an uptrend and investors trading gold are expected to be more active in the next several weeks.Data source: tradingview.com
The current resistance levels are $2 000 and $2 100, $1 900 and $1 800 represent the current support levels. If the price jumps above $2 000 it would be a signal to buy gold and we have the open way to $2 100.
Rising above $2 100 supports the continuation of the bullish trend and the next price target could be located around $2 300. On the other side, if the price falls below $ 1800 it would be a strong “sell” signal and we have the open way to $1 700.Summary
Gold is considered a safe-haven asset and the price of gold has advanced in the wake of the coronavirus crisis as investors look for safer places to invest their money. The price of gold is overbought currently but weakness in the dollar and low U.S. treasury yields could help this precious metal to advance even more. If the price jumps above $2 000 that would be a confirmation of the “bullish” trend and open way to $2 050 or even $2 100.