Whereas a lot of people expected prominent gold price momentum, the momentum seems rather subdued. No real gains or losses have been recorded, confirming the precious metal is in a consolidation phase. It will all come down to another back of macroeconomic events to get any feel for this market.
Gold Price Remains Subdued
It has not been the most exciting week for gold or other precious metals. No real market changes have occurred, resulting in ample sideways trading. It is a positive sign of stability, but given this year’s overall bull trend, investors hope for more. So far, the gold price isn’t budging, leaving speculators puzzles as to what will come next.
For the time being, gold hasn’t been able to surpass the $1,946 mark for an extended period of time. That level seems to act as resistance for the gold price, although it is a bit unclear how all of this should be interpreted exactly. Earlier this year, the gold price easily surpassed $2,000, making onlookers wonder if that was a mere fluke after all.
Should the gold price surpass this threshold in a convincing manner, there is a good chance $2,000 will become an attainable level again. Bulls are clearly not intent on making much happen right now. Given the semi-positive news affecting the US Dollar and US Treasury yields, that is not entirely surprising. At the same time, stocks are dumping hard across the board, eventually pushing investors to safer options.
What Could Come Next
Predicting any financial market is impossible, especially during unprecedented times like these. A global pandemic is not something anyone factors in when opening a price chart to make any sort of analysis. As such, all bets are off, either for better or worse. No one really knows where the gold price is headed next, as the market can easily go in either direction.
One interesting report to look forward to is the US Payroll report. More specifically, this is the unemployment report depicting the current status in the United States. News outlets claim there are less than 1 million unemployment claims for the first time in months. Whether that is effectively the case, will become apparent in the weeks to come.
At the same time, it remains to be seen how traders feel about this “improvement”. The numbers are not moving in the right direction quickly enough to think the US economy is returning to a normal state again. Assuming they are not too pleased, it is likely there will be another gold price increase over the coming weeks.