Gold - $1300 is so close yet so far

Omkar Godbole FXStreet Contributor

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].

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Overbought	Expanding
1H	Slightly Bullish	Overbought	Shrinking
4H	Bullish	Neutral	Expanding
1D	Bearish	Neutral	Low
1W	Bullish	Overbought	Low
Updated Aug 28, 02:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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