Gold was also sold in the recent liquidity crisis. Interventions in the gold market are also likely. In the short term, chart technology becomes more relevant when it comes to gold prices.
Gold price dropped
The price of gold came under considerable pressure last week. Today, Monday morning at 10:30 a.m., the troy ounce of gold on the spot market cost $ 1,619. This also corresponded to the Friday closing prices in US futures trading. After hitting a 7-year high at $ 1,675 on March 9 (U.S. futures; intraday high: $ 1,704), the price of gold fell 3.5 percent. In euros, gold was recently 12 percent below the all-time high of February 24 – then 1,544 euros per ounce based on the US futures.
After the steep reset, gold recently traded directly at an important support level. At $ 1,516, multiple significant highs were reached between August and November 2019. In addition, the edge of the upward trend that has existed since July 2019 runs at this threshold. The rising 12-month trend would have broken short-term at prices below $ 1,400. With an RSI of 34, however, the situation is already on the border with overbought sentiment.