The gold price made it yesterday the psychologically important jump above the $ 1,700 mark. Today was the next surge and we are currently seeing prices of $ 1,729. At the moment, one can confidently speak of an upward momentum. Gold holds the $ 1,700, and the next day (today) the gold price creates the next boost.
The reasoning behind the rising gold price
The arguments behind the rising gold price couldn’t be better. What is particularly interesting at the moment is an opinion that we addressed as theory yesterday. Gina Lee from investing.com mentioned currentthat the sell-off in the oil market (at the beginning of the week) caused investors to flee to cash. Investors sold their precious metals holdings to cover the losses. But now, we note where the oil price has stabilized (at an alarmingly low level) and is rising slightly, can the gold price breathe again and rise again? Gina Lee also says that the price of gold is currently able to continue its previous day’s gains in view of the higher risk aversion in the international financial markets. At the same time, governments would shoot more and more money into their economies to limit the growth slump caused by the coronavirus crisis.
And yes, of course the following is always the big argument in the background. More and more sovereign debt, and above all more and more money printing at the central banks, which makes the paper money system seem increasingly unreliable. And of course is the inflation mentioned by many critical commentators coming up? We have been following this critically for the past few weeks, but the fear of inflation is an important issue, especially in Germany! Attention: Tomorrow Friday will also be important for gold! Worldwide, tomorrow, at 10 a.m., you will be looking at the German Ifo business climate index, and at 4 p.m. at the US consumer confidence of the University of Michigan.
The ForexLive chart technicians speak today also of momentum in the gold price. After breaching the major hourly moving averages and yesterday’s $ 1,700 mark, gold buyers would continue to build momentum, pushing for new highs since April 16. Gold is now targeting the next high on April 16 at around $ 1,738, with buyers also keeping an eye on last week’s high of $ 1,747, ForexLive said. Again, it is mentioned that gold prices recovered after coming under selling pressure amid the chaos in the oil market towards the end of last week and earlier this week. But while the chaotic situation has calmed down somewhat, the gold price is now starting to rise again and the technical pause observed yesterday offers buyers a good situation to test higher levels again (in the chart we can see the trend in the gold price in US Dolar in the last 30 days.
Gold in euros
The gold price in euros was previously at a record high of EUR 1,606. At currently 1,598 euros, it is now a little weaker because at 2:30 p.m. US initial jobless claims had not exceeded the negative expectations. This now brings gold in US dollars down a little less to $ 1,724. So, do we have a little breather now and later the way up for gold? Attention, not only tomorrow, but also today at 3:45 p.m. and 4:00 p.m. US economic data will come, which can influence the prices.