Expanding on yesterday’s gold chart (remember that the Fibonacci measurement is 2095…today’s high was 2070…), daily RSI is now 89.8. The indicator has been this high just twice before; January 1980 (twice) and September 1999.
Gold traded lower early on Thursday, as investor mood was buoyed by the dovish stance of the Federal Reserve. On Wednesday, the Fed committed to leave interest rates near zero and pledged to use all its tools to support an economic recovery.
Gold remained bid in early trading on Friday, underpinned by the prospect of further fiscal stimulus and simmering US/China tensions. Meanwhile, the US Dollar Index fell to its lowest levels since September of 2018.
Gold hovered around the key psychological level of 1,800 in early trading on Tuesday as global coronavirus cases continue to soar and Sino-US disharmony escalated over China's pursuit of offshore resources in the South China Sea.
ES traded around noted resistance last week before finally turning down on Friday. Focus is towards 2777.25 and 2849. This the 38.2% retrace of the rally from March and 2 equal legs down. Lows from August and October reinforce the levels.
Gold prices inched higher in early trading on Thursday, as an increase in coronavirus cases threatened to derail economic recovery from the pandemic. A more dovish than expected June FOMC meeting has also bouyed the yellow metal.
Gold edged higher in early Tuesday trading, lifted by a weaker US dollar as investors eye the Federal Reserve meeting set to conclude on Wednesday. Meanwhile, inceased risk appetite and robust equity markets threaten to keep a lid on the yellow metal's price.