The gold price rises and rises and rises. The gold price had even passed the $ 1,600 mark last night. A new seven-year high. And on some websites and on television there is reason to think that the price of gold could continue to rise if the conflict between the United States and Iran escalated. But investors shouldn’t get excited about the gold price. The chart warns: A correction is necessary.
To blame the recent gold price rally solely on the killing of the Iranian general is simply too easy. The gold price rally started before Christmas. At that time, nobody on the stock exchange knew about this project, most of them had probably not even heard the name of the future victim. The gold price was able to rise to just under $ 100 within a few weeks before the US-Iran escalated. This attack led to a safe haven rally in the gold price and triggered a parabolic movement in terms of chart technology. But neither mine shares nor silver followed this movement. From a technical point of view, there are many indications of a correction, and gold is now also technically oversold.
This is by no means a negative assessment of gold. No, it is healthy from a technical point of view if gold should usher in consolidation in the coming days. This consolidation, which can last for a few weeks, should then form the foundation for the next upward movement in the gold price. Political exchanges have short legs – this should also be the case with regard to the gold price and Iran. The overheated sentiment will cool down. It is good and healthy. All of this should pave the way for new gold price highs in US dollars. Gold has already done this in other currencies. Iran will only play a minor role in this