The gold price is showing interesting recovery signals. After a difficult week, on Friday bullion tried to reverse the recent bearish trend, jumping above $1,830 an ounce in the final trading hours.
Despite the solid U.S. macroeconomic data, with the nonfarm payrolls of September showing values well above expectations, the greenback lost ground and both gold and silver rebounded.
In early trading, this morning, we have seen gold extending the rebound, reaching and surpassing the key level of $1,850 an ounce. From a technical point of view, the scenario has improved, as the selling pressure temporarily slowed down.
The weekend was sadly marked by the growing tensions in the Middle East, with the attack on Israel. This scenario could push investors to increase the presence of gold in their portfolio as safe haven asset, in case of further escalation of geopolitical turmoil.
Analysing the chart, the spot price is now farther from the key support level of $1,810, confirming the positive signals seen on Friday. A clear move above $1,850 – confirmed at the end of the trading day – could open space for further recoveries.
Of course, the main focus remains the monetary policy of the U.S. Central Bank, with investors waiting for the FOMC last minute, scheduled Wednesday. Any hawkish indication could revamp the bearish pressure on gold, while dovish signals would offer further fuel to the recent recovery attempt.
Carlo is an external market analyst for Kinesis Money. With a credential background in Economic Finance and International Exchange (MA), Carlo’s critical analysis of gold and silver markets’ performance is frequently quoted by leading publications such as Forbes, Reuters, CNBC, and Nasdaq.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
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