Spot gold eases on Wednesday and is on track for the first daily close in red after six days of uninterrupted rally.

Profit-taking after strong rally (boosted by geopolitical tensions and strong signals from Fed about rate cut that hit new six-years high at $1438) push the price lower.

Reversal pattern is forming on daily chart after Tuesday’s action ended in Doji with long upper shadow and subsequent easing generated negative signal.

The notion is supported by optimistic news about US/China trade talks which inflated dollar, as well as technical signals as daily RSI and stochastic turned south in overbought zone and momentum weakened.

Broken psychological $1400 support remains intact and limits pullback for now, however, further easing can be anticipated.

Overall picture remains bullish and current action can be seen as positioning, with extended dips to be contained at $1380/75 zone (broken Fibo 38.2% of larger $1920/$1046 fall / rising daily 10SMA / former top of July 2016) to keep bulls intact.

Res: 1424; 1433; 1438; 1450
Sup: 1400; 1396; 1385; 1380

Gold

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD holds gains above 1.1850 amid tepid market mood

EUR/USD is trading above 1.1850, holding onto recent gains The uptrend, however, at risk as coronavirus cases rise across the Eurozone. New lockdown restrictions may force the ECB to adopt a stronger dovish stance. Focus shifts to Powell's speech, EZ Preliminary PMIs. 

EUR/USD News

GBP/USD hovers around 1.2950 amid likely virus curbs

GBP/USD stays well bid near  mid-1.2900s following three successive failures to cross 1.3000 during last week. UK’s health authorities mull lockdown restrictions. Chancellor Sunak may extend business support loans. Fedspeak eyed amid a light calendar. 

GBP/USD News

USD/JPY drops to over six-month lows, fast approaching 104.00 mark

USD/JPY witnessed some follow-through selling for the sixth consecutive session on Monday. The USD was being pressured by fading hopes of another round of the fiscal stimulus measures. Resurgent COVID-19 cases benefitted the safe-haven JPY and contributed to the offered tone.

USD/JPY News

Gold jumps back on the bids above $1950 amid risk-aversion

Gold is back on the bids above $1950 amid growing coronavirus fears induced risk aversion. Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. 

Gold News

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News

Forex Majors

Cryptocurrencies

Signatures