A renewed gold run higher has just been put on ice for now as markets begin to consolidate ahead of the FOMC meeting. Initial gains were tempered yesterday and a “doji” candlestick (denotes uncertainty) was completed. We have seen a more constructive outlook for gold in the past week, but the shackles are still on the run higher. A dovish FOMC shift would allow gold to release higher. Technically, the indicators are primed for upside, with MACD lines ready to cross higher, whilst Stochastics and RSI are tentatively positioned for a bull run. Initial resistance is now $1972. The hourly chart shows a run of higher lows forming in recent sessions, where we see any supported weakness into $1940/$1955 band being a chance to buy for pressure towards $1992/$2015. Below $1937 we see the immediate bullish outlook is put on hold, A close below $1926 would be a worrying signal for the bulls.
Risk Warning for Financial Promotions
Hantec Markets' various market reports and commentary are issued by Hantec Markets Limited, who is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, No. 502635. The reports are prepared and distributed for information purposes only.
Trading in Foreign Exchange (FX), Bullion and Contracts for Differences (CFDs) is not be suitable for all investors due to the high risk nature of these products. Forex, Bullion and CFDs are leveraged products that can result in losses greater than your initial deposit. The value of an FX, Bullion or CFD position may be affected by a variety of factors, including but not limited to, price volatility, market volume, foreign exchange rates and liquidity. You may lose your entire initial stake and you may be required to make additional payments. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions. Before deciding to enter into FX, Bullion and/or CFD trading, you should carefully consider your investment objectives, level of experience, and risk appetite. You should only invest in FX, Bullion and/or CFD trading with funds you are prepared to lose entirely. Therefore, only your excess funds should be placed at risk and anyone who does not have such excess funds should completely refrain from engaging in FX and/or CFD trading. Do not rely on past performance figures. If you are in any doubt, please seek further independent advice.
The reports do not constitute personal investment advice, nor do they take into account the individual financial circumstances or objectives of the clients who receive it. All information and research produced by Hantec Markets is intended to be general in nature; it does not constitute a recommendation or offer for the purchase or sale of any financial instrument, nor should it be construed as such. All of the views or suggestions within the reports are those solely and exclusively of the authors, and accurately reflect their personal views about any and all of the subject instruments and are presented to the best of the authors' knowledge. Any person relying on these reports to undertake trading does so entirely at his/her own risk and Hantec Markets does not accept any liability.
© 2014 Hantec Markets Limited