Gold could gain even more if the dollar weakens further
If the price jumps over $2,000, this would be a confirmation of the “bullish” trend
Investors are currently focusing on the US economic negotiations and the upcoming presidential elections
Gold prices have risen above $1930 this trading week, and the current price is around $1929. The gold price continues to be on an upward trend as the COVID 19 pandemic continues to dominate the financial markets.
Fundamental analysis: The gold price scenario could be even better
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. Risk aversion is likely to prevail at the beginning of the next trading week, which is positive for the gold price.
Investor attention is currently focused on the negotiations for the US stimulus package and the upcoming presidential election. According to some analysts, gold is currently overbought and public sentiment regarding this precious metal has become greedy and euphoric.
Nevertheless, the scenario for the gold price could be even better, as the “pigeon-eyed” decision of the US Federal Reserve continues to put pressure on the US dollar. The gold price is also supported by the news that the House of Representatives has passed a $2.2 trillion coronavirus relief bill in an internal party vote.
The gold price is expected to continue to receive support and may even accelerate in October this year if the dollar continues to weaken.
Technical analysis: Gold price is in the “buy” zone
The gold price has continued its upward trend and it is expected that investors trading gold will be more active in the coming 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 an open path to $2,100.
A rise above $2,100 supports the continuation of the uptrend, and the next price target could be around $2,300. On the other hand, if the price falls below $1,800, this would be a strong “sell” signal and we have the open path to $1,700.
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. The gold price is currently overbought, but the weakness of the dollar and low yields on US Treasury securities could help this precious metal make even greater strides. If the price jumps above $2,000, this would confirm the “bullish” trend and open the way to $2,050 or even $2,100.