Gold - $1300 is so close yet so far
|Gold [XAU/USD] remains bid in Asia above $1290 amid risk-off in the markets and due to the debt ceiling uncertainty in the US.
Currently, the yellow metal trades around $1294/Oz levels. Prices fell to $1276 on Friday, the lowest level since August 16, before ending the week on a positive note at $1291.13.
Multiple Intraday highs above $1290
The metal first jumped above $1290 on August 11 and since then has posted multiple Intraday highs above the same. On August 18, the metal clocked a high of $1300 only to end the day on a weaker note at $1284.38 levels.
On the daily chart, we see steady higher lows; however, spikes above $1290 have been short lived. Thus, it feels like $1300 is so close yet so far.
US debt ceiling could yield rally above $1300
Trump’s inability to get things done on the debt ceiling front by mid-October could lead to US government shutdown and send shockwaves across the globe. The resulting risk aversion could easily yield strong rally above $1300 levels.
Gold Technical Levels
A break above $1296 [June high] would expose $1300. Multiple daily closes above the same could yield a sustained rally to $1337 [Nov 2016 high]. On the downside, breach of support at $1291 [5-DMA] would open doors for a pull back to $1288 [10-DMA] and $1285 [1-hour 200-MA].
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.