Gold: Bulls on the defensive and target space back into the rising channel at $1,314

  • Gold has been on the defensive but has so far held on to the 1,300 handle.
  • However, Sino/US trade headlines sent a bid into the safe haven and bulls target the rising channel support line and 23.6% fibo upside target.

Gold prices turned south since topping out at the recent highs of $1,326.30 as markets priced in optimism over Sino/US trade. 

White House Adviser Larry Kudlow said in an interview with Fox Business Network that a "sizable distance" remains between the U.S. and China in protracted trade negotiations. The news followed CNBC reporting, citing sources, that it is highly unlikely that a meeting betweenTrump and Chinese President Xi Jinping before the March 1 deadline for tariffs to increase on Chinese goods will take place. 

Gold up 4.5% on Kudlow

Kudlow explained that previous talks covered "a tremendous amount of ground" but said enforcement would be very important, as well as technological and structural issues. This is of no news to investors, anticipating a bumpy road ahead, although the double whammy of news has dented a fragile risk-on bid in the market sending the benchmarks on Wal Street into a sea of red, the VIX on a spike and gold prices 4.5% higher at the time of writing. 

Gold levels

Gold is on the defensive but has so far held on to the 1,300 handle. However, recent sentiment has driven a flight to safety across the board which has put in a bid in gold that has otherwise been on course for a break of 1,300,  guarding the 1297 9th Jan highs, and then a test of the 23.6% Fibo retracement down at 1,287 comes into play. A break of the fractal low down at 1276 will confirm a change of flow with a target down to the area that has the round 1,250 fractal old resistance and the 161.8% fibo target located at 1,245. To the upside, bulls need to get back into the rising channel at the 23.6% Fibo of the 23rd Jan supporting fractal at 1276 to recent highs of 1326  at 1314. such a move will open 1320 and target R3 at 1323. 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Weakest daily close since June 2017, focus on US durable goods

EUR/USD looks south toward 1.10, having bolstered the already bearish technical setup with a close below 1.1176 yesterday. The pair took a beating yesterday, courtesy of the broad-based US dollar demand. 

EUR/USD News

GBP/USD regains 1.2900 handle on Brexit headlines

The GBP/USD pair regains its stand above 1.2900 while heading into the London open on Thursday. Absence of immediate challenge to PM May’s position and a likely Brexit deal voting helps the GBP.

GBP/USD News

USD/JPY keeps range around 112.00 post-BOJ

USD/JPY has barely moved in response to BOJ’s decision to keep key policy tools unchanged. The downward revision of the growth and inflation forecasts could push the JPY lower during the day ahead. 

USD/JPY News

US Durable Goods Preview: Where the consumer leads

Durable goods orders are expected to rise 0.8% in March having fallen 1.6% in February. Orders excluding the transportation sector are predicted to gain 0.2%.

Read more

Gold: Immediate rising support-line favors gradual recovery to $1280

Gold is taking the rounds near $1276 while heading into the European open on Thursday. The yellow metal has been on recovery from Tuesday when it plummeted to the 2019 lows.

Gold News

Majors

Cryptocurrencies

Signatures