Where is the Gold Price After This?
The price of gold had soared to the range of $ 1357 per troy ounce responding to the situation that occurred on the Korean Peninsula following the launch of a missile by North Korea (North Korea) which finally landed in the Japanese sea region last August. North Korea-United States (US) relations that have long been unharmonious suddenly heated up with a strong response from American President Donald Trump.
Apart from concerns about the true open conflict between North Korea and the US, what is clear is that President Trump’s response succeeded in raising concerns in the global market, marked by capital transfers from high-risk assets to safe-haven assets known as risk aversion. One of the most popular safe-haven assets is gold, so it is not surprising that gold prices soared as a result.
Previously we had made a discourse that there was a possibility that the gold price would be corrected from the range of $ 1337 / troy ounce to the range of $ 1299- $ 1263 / troy ounce (1 troy ounce about approximately 31.1 grams). It turns out that indeed the gold price was successfully corrected to the support area ($ 1299- $ 1263 / troy ounce), even reaching the area of $ 1260.42 / troy ounce.
We also briefly explained the strategy that the support area in the range of $ 1299- $ 1263 / troy ounce is a good area to look for buying opportunities and indeed there has been a rebound to the range of $ 1305 / troy ounce, although then bullish momentum is reduced and gold prices are corrected again and when writing this is made in the range of $ 1277 / troy ounce.
Nevertheless, for the long-term view of gold prices in general are still moving in an uptrend. The area that needs to be considered to look for buying opportunities still remains in the range of $ 1299- $ 1263 / troy ounce. It’s just that there is still a need to confirm the opportunity based on technical analysis. If the buying opportunity has really been confirmed, then the gold price will again have the chance to experience a rebound targeting the range of $ 1321-1357 / troy ounce.
The potential for a rebound in gold prices is likely to be hampered if the gold price falls below the range of $ 1260 / troy ounce, because then it will open up opportunities for further weakening to the range of $ 1240 / troy ounce.