Uncertainty Prevails As Gold Keeps Hanging Around the 50 SMA
Gold turned bullish again last week, climbing $35 higher and it's remaining up there, hanging at the 50 SMA on the H1 chart
GOLD retreated from the highs in recent months, but in the last three weeks Gold has been trading sideways. Sellers were being cautious as the global economy keeps weakening, which increases the demand for Gold and sellers were being cautious as well, since the trade deal between US and China was coming underway, improving the sentiment in financial markets.
Although, we saw a jump at the end of the previous week, which was a sign that if there was going to be any move in Gold, it was going to be up. Last week, the FED cut interest rates for the third time in a row and despite stopping with rate cuts for now, they let markets know that the downside was more favourable for the next move in interest rates, rather than hiking them.
As a result, the sentiment deteriorated further in financial markets and the USD turned dovish. As a result, Gold climbed around $35 in the following sessions. The 50 SMA (yellow) caught up with the price last Friday and it has been providing support on the H1 chart since then. Now, the p[rice is sicking to the 50 SMA, which shows that Gold traders are uncertain and they are waiting for another reason to push higher again.
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