If the price jumps above $1900, the next target could be $1930 or even $1950
Risk aversion will probably prevail in the coming days, which is positive for the gold price
As long as the gold price is above 1800 dollars, this precious metal is in the “buy” zone
The price of gold has dropped from $1911 to $1860 in the last week of trading, and the current price is $1891. Nevertheless, gold is still in a bull market as the COVID 19 pandemic continues to dominate the financial markets.
Fundamental analysis: US economic stimulus programs and the upcoming presidential elections are the focus of investors
According to some analysts, gold is still overbought, and public sentiment towards this precious metal has become greedy and euphoric. The price of this precious metal is currently below the $1900 level, but the mood for gold remains bullish in the long run.
The weakness of the US dollar and the low US Treasury yields could help this precious metal to rise above the $1900 level again, but investors trading gold should be a little more cautious. Risk aversion is likely to prevail in the coming days, which is positive for the gold price.
Gold is considered a safe haven and the price of gold has risen in the wake of the coronavirus crisis as investors look for safer places to invest their money. COVID 19 cases in the US continue to rise, while Europe is not doing any better with this pandemic.
This is certainly not good for the economy, but it could give a further boost to the price of gold. It is expected that the gold price will continue to be supported and could even accelerate in November this year if the dollar continues to weaken.
Technical Analysis: Bulls focus on breaching the $1900 resistance level
Data source: tradingview.com
The current resistance levels are $1900, $1950 and $2000, $1850 and $1 800 represent the current support levels. If the price jumps above $1900, it would be a signal to buy gold and we have the open path to $1950.
A rise above $2000 supports the continuation of the upward trend and the next price target could be around $2200. However, if the price falls below $1850, this would be a “sell” signal and we have the open path to $1800.
The gold price continues to be supported by uncertainty about the future of the global economy, and safe-haven investments generally perform well during downturns and financial crises. The pandemic pushed US hospitals to the edge of capacity as the number of coronavirus cases exceeded 9 million and concerns continue to dominate financial markets amidst the ongoing pandemic. Investor attention is currently focused on the negotiations on the US economic stimulus package and the upcoming presidential elections. If the price jumps above $1900, it would be a signal to buy gold and we have the open road to $1950.