Gold barometer of moods. Quotes still up.

Gold mood barometer.

Markets were in mixed moods for the vast majority of the week. We learned a lot of macroeconomic data that largely supported current movements. The Chinese virus is still the focus of global emotions and a source of dollar appreciation. One of the currencies that has suffered particularly from this is, of course, the euro. The question then arises whether the current state of affairs is already a long-term trend, or maybe we will have a calming down of the mood in the near future? To increase the likelihood of an answer being accurate,  it is worth looking at gold prices that reflect the current sentiment well.

Friday increases

Yesterday's increases were largely determined by the lack of major moves on the stock market. Most indices today behaved strongly neutral or slightly below the line. The US stock market closed at similar levels as yesterday. Gold today took advantage of this situation, strengthening by nearly 0,4%.

Chart gold, M30 interval. Source: xNUMX XTB xStation

In addition, currently coronavirus, which is already infected by tens of thousands of people, effectively supports the anxiety and appreciation movements of gold. The Chinese authorities are applying increasingly stringent precautions to prevent the further spread of the epidemic. The Chinese economy is standing deepening the slowdown and stagnation. It is possible that this situation will persist for the next month.

Macroeconomic data

In Poland, the last sessions did not look very colorful. In addition, GDP readings, which dynamics slow down, have a negative effect. Were those expectations? A large proportion of analysts expected worse results, but their forecasts did not predict such GDP. Inflation is not surprising, because we have heard a lot about its potential increases (taking into account the series of increases that were to come from 2020). European industry has also disappointed us in recent readings (in addition to PMI for services). The global economic situation (which is not revealing) is at a poor level.

Chart gold, D1 interval. Source: xNUMX XTB xStation

Daily gold prices show that we are in an interesting moment. The rate rebounded from the last confirmed peak, which indicates further strengthening. The next sessions will be crucial, due to the approaching levels from the beginning of January, followed by a strong gathering of demand at 1589,95 per ounce. Gold from this perspective well reflects global moods. This ore strengthened throughout 2019 (for obvious reasons) and its further strengthening is not excluded in 2020.