Gold Spot technical analysis 28.01.2020

Gold on the spot is trading higher as the investors are abandoning risk assets, while the demand for defensive assets (including this metal) is increasing. The continued tension over caused by the coronavirus will push prices up.

The price is above the middle Bollinger band, below SMA 5, but above SMA 14. RSI is above the 50% level and is declining. Stoch indicate a weakening of the price decline.

Trading recommendations:

The resumption of gold purchases is possible if it holds above the level of 1576.75 with a likely price increase to 1593.00.