Gold Price Prediction – Gold Rallies as Geopolitical Risks Rise

Gold rises and remains oversold
David Becker
Comex Gold

Gold prices moved higher as geopolitical risks began to raise its ugly head. Over the weekend, drones bombed several Saudi Arabian oil fields, reducing production by more than 50%. While the Saudi’s expected to bring 33% of the production that came offline back online, the move by Yemenis terrorists, have changed the investment landscape.

Trade gold with FXTM

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money

Technical Analysis

Gold prices moved higher as geopolitical risks rose, but was unable to push above resistance near the 10-day moving average at 1,509. Support on the yellow metal is seen near the 50-day moving average at 1,476.Short term momentum has turned positive as the fast stochastic generated a crossover buy signal in oversold territory. Currently the fast stochastic is printing a reading of 18, which is well below the oversold trigger level of 20 which could foreshadow a correction. Medium-term momentum is negative as the MACD histogram is printing in the red with a downward with a flat trajectory which points to consolidation..

The US Points to Iran Raising Geopolitical Tensions

American officials say intelligence indicates that Iran was the staging ground for a debilitating attack on Saudi Arabia’s oil industry. Both countries are not in the process of determining responses. The assessment, comes as President Trump raises the prospect of the US and Saudi Arabia joining forces to launch a retaliatory strike on Iran. Such a move could quickly broaden into a regional conflict. This could generate more volatility in the market and buoy gold prices. With global economies feeling the pinch of the trade tariffs, higher oil prices could generate significant instability in the capital markets.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.