Analysis Of The XAU/USD Pair The Ratio Of The S&P 500 Index To Gold Hits A Low

By RoboForex Analytical Department

The S&P 500 to gold ratio indicates the number of ounces of gold required for a purchase. According to the calculations by the investment management firm Incrementum AG, this indicator has reached lows previously recorded in the 1930s and 1970s, ahead of major crises in the US economy. Additionally, as strategists from Ameriprise Financial Inc. note, against the backdrop of the highest central bank interest rates since the 2008 crisis, gold maintains its position and shows no signs of depreciating. This suggests that large institutional investors are fearing a downturn in the US economy and are hedging their risks.

Technical Analysis Of The XAU/USD Pair

On the D1 timeframe, the XAU/USD pair remains unchanged, with resistance at 1948.98 and support at 1903.96. Yesterday, the quotes dropped below the level of 1923.44. Nevertheless, the potential for further increases in the troy ounce's value persists, thanks to the fundamental factors mentioned earlier.

On the H1 timeframe, a local level of 1914.10 has formed, from which speculative intraday purchases are relevant, with the initial target set at 1923.44 and the potential to grow to 1948.98. Conservative money management is recommended, as attempts by major players to change the current trend cannot be ruled out.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.