Gold 1739,145
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EURUSD 1,1872
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DJIA 33346,50
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OIL.WTI 59,575
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DAX 15210,50
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When does an asset that everyone has long forgotten about start to grow? That’s right! A little later than when the last active trader forgot about it. We wrote about such a forgotten asset recently. Of course, we are talking about gold!
XAUUSD
Above is the same chart as a week ago. In last week’s article, we noted that the gold metal broke through the upper boundary of the falling channel. And we advised to pay close attention to this asset.
What changed this week? The bears made another attempt to sell the gold down and bring it back to the descending channel boundaries. As you can see, this attempt failed. The gold pushed back and rallied up again. Moreover, it rose again. A double bottom appeared on the chart. From the technical point of view, all this looks like an emergence of a new rising trend.
There is also a fundamental side of the question. It consists in the fact that inflation begins to accelerate all over the world. Gold metal almost always rises on its rise, as investors try to save money from depreciation.
Are there risks for gold?
From a technical and fundamental point of view, gold metal has a way to go up. What could prevent this development from happening? The biggest danger is a rapid rise in US dollar interest rates.
By itself, in view of rising inflation, this is unlikely to push gold to new lows this year. The risk lies elsewhere. A rise in rates could cause the stock market to fall sharply. In that case, the yellow metal would also be hit, on the back of selling any assets, to hold shoulder positions.
10.00 EU manufacturing activity index for March
14.30 US Trade Balance for February
20.00 US Federal Open Market Committee meeting minutes
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