Gold bid in Asia, attempts break above 50-hour MA


  • Gold is reporting gains in Asia and is flirting with the 50-hour moving average (MA) hurdle.
  • The major MAs indicate the gains will likely be short-lived.

Oversold conditions have likely put a bid under gold in Asia, consequently, the yellow metal is flashing green.

At press time, gold is flirting with the 50-hour moving average (MA) hurdle of $1,244, having clocked a 2018 low of $1,236 on Friday.

The hard currency has dropped 9.45 percent in the last three months on increased prospects of faster Fed tightening and breached a long-term ascending trendline support on Friday.

Further, the intraday charts remain biased toward the bears as the 100-hour MA is located below the 200-hour MA. So, corrective rallies could be short-lived.

On the data front, China's Q2 GDP today will be closely watched for evidence of a slowdown due to trade tensions. Also scheduled for release are monthly retail sales, industrial production figures. A weaker-than-expected GDP reading could add to the bullish tone around the safe haven yellow metal.

Gold Technical Levels

Resistance: $1,244 (50-hour MA), $1,248 (100-hour MA), $1,252 (200-hour MA).

Support: $1,239 (support on the hourly chart), $1,236 (Friday's low), $1,234 (50-month MA).

  TREND INDEX OB/OS INDEX VOLATILY INDEX
15M Bullish Neutral High
1H Bullish Neutral Low
4H Bearish Neutral Low
1D Bearish Neutral Expanding
1W Strongly Bearish Oversold Expanding

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds onto high ground after robust US inflation data

EUR/USD is trading close to the highs after US CPI beat estimates with 1.6% YoY and 1% on core CPI. Earlier, higher US yields supported the dollar ahead of a bond auction. US fiscal talks and coronavirus headlines are eyed.

EUR/USD News

GBP/USD pressured amid concerns over the UK economy

GBP/USD is trading close to 1.30, pressured after UK Chancellor Sunak said many will lose their jobs. His words followed Q2 GDP, which beat yet crashed by 20.4% in Q2. 

GBP/USD News

Gold bounces above $1,900 after rapid collapse

Gold is trading above $1,900 recovering from the biggest rout in seven years. Profit-taking and higher US yields weigh on the precious metal. US inflation figures are eyed.

Gold News

Cryptos: Euphoria takes its toll, volatility ahead

The overbought level in the crypto market, reflected in extreme bullish sentiment levels, called for a pause in the uptrend and has come in recent hours. Ethereum, the undisputed leader of the bullish movement.

Read more

WTI: Big move looks overdue

WTI could soon witness a big move in either direction. That’s because, the spread between Bollinger bands – volatility indicators placed 2 standard deviations above and below the 20-day simple moving average of price - has narrowed ...

Oil News

Forex MAJORS

Cryptocurrencies

Signatures