Richard Perry
Independent Analyst
Gold
Just when it looked as though gold was starting to build some positive traction, the bulls have been dragged back once more. This tendency has been a feature of this bull run on gold. Breakouts never seem to be clean. A bearish outside day session yesterday comes as a disappointment for long positions, but is not disastrous, yet. A pullback to the support of what is now a four week uptrend (today at $1764, which is also the breakout of the old May high) has the potential to be an opportunity. However, the bulls will need to fight for it. The market ticking back lower this morning is again testing $1764. The breakout of the old May high at $1764 has been a basis of support in recent sessions, but if there is a closing breach of yesterday’s low at $1758, then the impetus of this breakout will turn sour and be lost. Momentum indicators have tailed off slightly in the wake of yesterday’s move, but retain their positive configuration for the time being. They will also need to be monitored for corrective developments. Whilst we are again left frustrated by this latest failure to break clear of resistance, we would remain positive on gold whilst the market holds on to the breakout of the old highs above $1744. Resistance at $1789 is the new multi-year high, a shade under $1795 which is the key 2012 high and we still expect this to be tested in due course.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.