Gold traded lower after it hit resistance fractionally below the 1237 barrier. Although the metal continues to trade above the medium-term downside line drawn from the peak of the 11th of April, as well as above the upside support line taken from the low of the 16th of August, in the short run, it remains stuck within the range that has been containing most of the price action since the 15th of October, between 1220 and 1237. Therefore, we will adopt a flat stance for now with regards to the near-term outlook.
If the bears maintain their momentum and manage to overcome the 1220 barrier, which is the lower end of the aforementioned range, then we may experience extensions towards the low of the 31st of October, at around 1212. Another dip below 1212 could set the stage for our next support, at around 1207, which is near the peaks of the 2nd, 3rd and 4th of October.
Shifting attention to our short-term momentum studies, we see that the RSI lies below 50 and points down, while the MACD stands below both its zero and trigger lines, pointing south as well. These indicators detect negative momentum and support the notion for this metal to keep trading lower for a bit more.
On the upside, we would like to see a clear break above the range’s upper bound, at around 1237, before we start examining whether the bulls have taken the upper hand. Such a break may initially aim for the peak of the 26th of October, near 1243. However, we would like to see a move above the 1245 zone, marked by the highs of the 16th and 17th of July, before we get confident on more upside extensions. Such a break could pave the way for the psychological barrier of 1250.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
With all eyes peeled on the halving, Bitcoin is the center of attention in the market. The pioneer cryptocurrency has had three narratives this year already, starting with the spot BTC exchange-traded funds, the recent all-time high of $73,777, and now the halving.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.