Gold Price Analysis
- Gold prices[1] are starting the week with strength after interacting with a key support zone last week.
- Last week saw Gold prices lose as much as -4.4% from the high to the low.
- Gold prices remain in overbought territory via RSI on the monthly chart, but are bulls willing to wait or is that theme of strength nearing a return?
Gold Prices Fall into Key Support Through NFP
We’re not even through half of the year yet and it’s already been one for the record books, in a variety of ways. After an unprecedented level of market volatility in March and into April, Gold prices have shown a general tendency to range over the past month as markets gear up for whatever is next.
While the initial carnage was very visible in global equities, that aggressive turn-around which helped to drive the Nasdaq 100 to an even-higher all-time-high[2] illustrates just how strong the buy the dip move has been. This, of course, was helped along by some considerable support from global governments, key of which was the US, as multiple stimulus programs were enacted in the effort of off-setting the economic destruction from the novel coronavirus. This brings up the prospect of USD[3] weakness, particularly as the potential for continued government support remains.
That hope took a bit of a hit last week on the blowout NFP number that caught so many by surprise.[4] While most economists were looking for yet another month of bad data, job losses and rising unemployment the actual print came out in a very different way – showing the most jobs added in a month – ever. That gave a quick shot of strength to US
