Will we experience a significantly low gold price again or will the next price breakout come soon? We consider the technical gold prospects on a euro basis.
Consolidated gold price
The gold price has also been fueled by rising speculative demand in recent weeks. On a euro basis, gold reached its all-time high in FOREX trading on August 6, 2020 at 1,737 euros. On Thursday afternoon at 4:30 p.m., the troy ounce of gold cost $ 1,937. That corresponded to 1,637 euros. The euro gold price was thus 100 euros or 5.7 percent below the latest record.
The euro gold price is currently quoted at the level of the 50-day line. So upward momentum has already given way to the market. The sentiment indicator RSI is in neutral with a value of 45. A break in the mentioned supports would increase the likelihood of the gold price returning to the area of the 200-day trend. This is currently 1,529 euros.
In the context of this scenario, based on the current price level, a setback of around 6.5 percent would be expected, or a roughly 12 percent consolidation based on the August high. On the other hand, it would need a short-term rise above the threshold of 1,675 euros to enable a new attack on the record high.