The euro gold price has consolidated around 6 percent since the last record high. The chances of another upward movement increase. That’s the technical situation!
Gold price consolidated
This morning at 11:15 a.m., the troy ounce of gold on the spot market cost $ 1,708. That corresponded to 1,517 euros. Since reaching the record high on May 17, the euro gold price has consolidated by almost 6 percent. At the beginning of the year, the precious metal was up around 12 percent. What is the technical situation?
In the meantime, the price reached a two-month low at EUR 1,489. Here we see technical support at short notice. If the gold price is quoted below it on the daily closing basis, however, short-term selling threatens to continue, possibly up to the intermediate low of 1,423 euros at the end of March. To the north there is the next significant barrier in the range between 1,524 euros and 1,540 euros.
With an RSI (Relative Strength Index) of 30, market sentiment was already “oversold”. With the interim recovery, chances are good that we have already seen the peak of price consolidation. To this end, the gold price should recapture the range of 1,520 euros in the coming trading days.