- Gold has busted through yesterday's resistance but yet to break 1529/30.
- Futures on Thursday for December delivery rose $3.40, or 0.2%, to settle at $1,531.20.
Gold prices have been grinding to the upside and has exceeded yesterday's sessions highs, breaking through $1,524 and scoring a high of $1,527 in recent trade. Gold prices are up 0.39% on the day having travelled up from a low of $1,508.
The bulls are fully in control as investors steer clear of the risky asset classes. The US 10-yers yields have fallen to the lowest levels since August 2016 and gold is loving it. The inversion of the 2/10-year curve that took place yesterday sent panic into the markets sending stocks lower and driving Trump to the twitter platform that he is using more frequently of late, obviously concerned for how the stock markets are performing.
Futures on Thursday for December delivery rose $3.40, or 0.2%, to settle at $1,531.20 an ounce and this was the highest most-active contract finish since April 11, 2013. In other precious metals, spot silver is up 0.33%, travelling between $17.10 and $17.38. The September silver, however, did not perform so well and held onto some of its earlier loss, to end 6.6 cents, or 0.4% lower, at $17.214 an ounce. The gold & silver ratio travelled higher by 0.29% between a range of 87.61 and 88.36 as gold takes up the most of investors idle capital in doom and gloom markets.
Gold can only keep on a northerly trajectory
In this poor global growth outlook, where, at best, for the year 2020, economists are assuming easing central bank policies will only add an additional 0.2%, gold can only keep on a northerly trajectory. However, when you factor in the possibility of trade wars getting worse, downgrades to such growth forecasts will be factored in. China, Germany and the US are slowing and UK's Brexit saga is an additional concern. US consumer spending, jobs and wages are reasonable and are helping to underpin consumption, so the Dollar is likely to outperform in the FX space, which could make gold's prospects for the upside somewhat shorter despite expectations of an easing bias at the Federal Reserve.
Gold has yet to break the 1528/30s which were a prior support area where the price has been expected to hold these initial tests. However, on a full-on break higher, bulls will look to the 127.2% Fibo target which is located around 1,560, guarding the Oct 2012 highs at 1795.
|Today last price||1522.6|
|Today Daily Change||6.30|
|Today Daily Change %||0.42|
|Today daily open||1516.3|
|Previous Daily High||1524.06|
|Previous Daily Low||1494.45|
|Previous Weekly High||1510.16|
|Previous Weekly Low||1436.96|
|Previous Monthly High||1452.72|
|Previous Monthly Low||1382.02|
|Daily Fibonacci 38.2%||1512.75|
|Daily Fibonacci 61.8%||1505.76|
|Daily Pivot Point S1||1499.15|
|Daily Pivot Point S2||1482|
|Daily Pivot Point S3||1469.54|
|Daily Pivot Point R1||1528.75|
|Daily Pivot Point R2||1541.21|
|Daily Pivot Point R3||1558.36|
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.