Gold slipped further towards $1180.5 as rally in global stocks continues, sudden turn in demand of the yellow metal was due to risk-on trades worldwide regaining lost interest along with a stronger dollar. All the fears and worries about U.S policies and Fed rate hikes took a backseat as investors turned positive on risky-asset class dampening the demand for the yellow metal which gave the bears additional ammunition to push back the price lower towards the key support zone.
Technically gold broke $1195 mark yesterday, which today was followed by incremental selling seen in the Asian trading session where the metal broke its key support zone of $1182-$1184 sliding towards $1180.5. This price move suggests a violation of the support but it will only be confirmed if the metal closes below it today. The zone of $1182-$1184 is a key support area of the yellow metal which must hold to keep bulls in the game. A violation will be a bearish sign and the price may fall towards its recent lows of $1136 and even lower. Today’s closing is crucial and decisive for the price movement in either of the directions.
Gold saw a sell-off in trade where the price slipped over 1% intraday as global risk-on trades resumed. Earlier, the metal had hit a fresh 8-week high just couple of days back on surge in safe haven demand due to economic uncertainties led risk-off trade which was a key driver of the price increase over the past 30 days.
Technically gold broke $1195, a reasonable support/buying area in the single trading session pushing the prices to a low of $1183.5 and testing a crucial support. This zone of $1182-$1184 is a key support for the yellow metal and it must hold. Whereas, a failure to do so could be a game over for the bulls as the metal can go down towards recent lows of $1136 levels and maybe even lower.
Gold slips in European trading session after struggling to hold the $1195 mark which was a good support on account risk-on trades coming back as U.S Dow Jones closed above 20,000 for the first time yesterday. Rally in stocks across the globe dampened the demand of the yellow metal pushing its price lower, a weak dollar was of no help either.
Technically gold broke the support of $1195 which was followed by incremental selling pushing the prices to a low of $1191. This move opens up further downside towards the key support zone of $1182-$1184 where the metal is expected to take a breather from the selling pressure. This support zone must hold but if it fails then its all over for the bulls and the metal can go down towards recent lows of $1136 levels and maybe even lower.
Gold was in a range bound trade from past few sessions where the $1195-$1198 acted as a support/buying zone for the yellow metal.
Gold prices eased from 8 week highs during the Asian trading session broadly on account of profit taking on recent gains and flurry of policy actions taken by U.S president Donald Trump.
Gold had hit fresh 8 week high yesterday before closing lower at $1210.8. Gains were erased in the morning/Asian session were the metal fell below its short term support at $1205 to $1202, prices are now finding it difficult to cross and sustain $1205 which may be acting as a shorting point for day-traders.
Gold though still in a positive bias, is facing range bound sessions where it is unable to breach $1220 on the higher side which is an important point for the continuation of the uptrend, and on the lower side it is seeing buying around $1195-$1198 levels.
Technically gold has support around $1195. Parallel trend lines on daily chart confirms the support which if taken out could open further downside to $1182-$1184 levels.
Gold has been on a rise in 2017 with prices seeing a gain of 5%. The yellow metal price is rising due to a spur in safe haven buying on the back of economic uncertainties mostly caused by worries regarding new U.S president Donald Trump’s policies , U.S Fed’s rate hike outlook of number of hikes in the year and its pace and a weaker dollar.
Technically gold is looking bullish with charts indicating a rise to $1303.95 taking into account the current global scenario.
In the weekly chart –
Last week gold closed flat after making a high of $1214.7 and a low of $1195.8, the metal took support obliging the trend line at $1195 which can now be regarded as a short term support until the price breaches the next resistance level of $1225
Gold prices moving higher seems to have a short term support/buying around $1205 ( A ) zone indicated by the intersection of trend lines.
The next resistance suggested by the intersecting trend lines is at $1225 ( B ), if it manages to close above that then the next price target could be around $1247-$1249 where the metal faces a stiff price hurdle.
On the contrary a close below the level of $1195 rings a bearish bell, the price may fall further retesting the earlier lows of $1182-$1184 where the metal has a big support. A breach of $1182 can be regarded as extremely bearish where all long positions should be closed.
Gold made a positive breakout towards $1212 in the late Asian trading session on account of economic uncertainties and worries over the 2 big speeches lined up later in the day – British PM Theresa May on Brexit and Chinese President Xi Jinping at Davos on the global economic outlook.
The jitters are backed by the inaugural address by President elect Donald Trump who takes office at the end of the week.
The precious metal was in a range bound trade yesterday testing both resistance and support.
Outlook for gold broadly remains bullish due to global economic worries and U.S Fed’s number of rate hikes and its pace in the current year.
Gold’s weekly chart shows a breakout above resistance level of $1208.7, the next resistance on the chart is at $1228 which is a likely target in coming days.
Prices can go further till $1248 where the yellow metal faces a stiff resistance.
Gold is in a range bound trade after hitting highs of $1208 in the Asian trading session due to rising uncertainties over Donald Trump’s policies and Brexit concerns.
A higher dollar is capping the yellow metal gains, though it still remains in a positive bias.
Gold took support at $1197.5 before hitting the $1208.45 mark which is a resistance on the daily chart. A break of either support/resistance may lead to a more directional price movement.
A buy in dips and sell at highs method can be used to trade the range intra-day.
Positional trade remains the same, it can be bought for a possible target of $1225-$1228 and even higher to $1248 which is its next key resistance level with a stop loss at $1182.
Gold in this week gained over $22 to close at $1196 on account of a weaker dollar and uncertainties still mounting over policies which U.S president elect Donald Trump might take upon next week when he joins office from 20th.
Gold remains bullish and is poised for more upmove considering the safe haven buying which has spurred to shield from the cloud of uncertainties in the coming weeks.
Technically gold closed higher breaking the long term trend line resistance of $1174 on the weekly chart.
On the higher side, chart shows a resistance at $1228 which is also confirmed by the parallel long term trend line.
Gold can be bought for the target of $1225-$1228 and even higher for the coming week.
It can go higher to $1248 which is its next key resistance on the chart
For positional traders stop loss can be placed around $1182.
Gold retreated from seven week highs of $1204 on Friday as U.S dollar gained some strength back, but continued political uncertainties in U.S supported the yellow metal demand.
Dollar found some demand after comments made by market looking strong.
But the dollar still remained under pressure post President Elect Donald Trump’s conference where he failed to offer details on his promises to boost fiscal spending and cut taxes.
Gold found support at $1187.5 before rebounding towards $1196.
Since the start of 2017, gold has been on an upmove regardless of a strong dollar backed by increasing uncertainty over polices which the U.S President Elect Donald Trump might consider after taking office from 20th of this month.
Yesterday after the first official conference held by Donald Trump the gold moved northwards breaking a key resistance level of $1188 by closing above it.
Today also the trend continues with gold trading above $1200 mark.
Gold can move up to $1238 which is the next resistance on the daily chart and even higher.
Gold can be bought for the target of $1235-$1240 having a stop loss at $1182
Current market price is $1203.5