Gold finding support into the Brexit vote, suffocating below the pivot


  • Gold prices have entered a bearish phase on the charts, albeit remains in a consolidative phase as investors stay on the sidelines ahead of Brexit, trade and global growth-related risks. 
  • Gold is currently trading at $1,288/oz, down from a high of $1,294.85/oz and slightly up from a low of $1,286.67/oz.
  • Gold futures finish lower for the first time in 3 sessions.

Gold has wobbled within the wider consolidation of the 2018 bullish trend as we head into the Brexit vote, although taking its cues from optimism on Chinese authorities offering some solace to investors with promises of various implementation of support for the Chinese economy. 

China measures supporting risk on

The People’s Bank of China said that it would increase efforts to spur their economy by improving credit availability for smaller companies. There was also a pledge by the Chinese Ministry of Finance to cut taxes and ramp up infrastructure spending. As a result, global stocks picked up, and on Wall Street, the Dow Jones Industrial Average DJIA climbed 132 points, or 0.6%, to 24,042, and the S&P 500 index added 24 points, or 0.9%, to 2,606 while the Nasdaq Composite Index climbed by 109 points, or 1.6%, to 7,015. However, as we move into the Brexit vote, there seems to be some flight to safety taking place. Stocks are off their highs for the session and gold is stabilising at the time of writing. 

Gold levels

  • Support levels: 1287 1283 1278
  • Resistance levels: 1291 1295 1300

The 1300 psychological level is proving a tough target to breach. The price is now back below 1290 and has been testing the robustness of the pivot located at 1291 which has proven its fragility and has given way for a run towards 1280. The 2018 50% Fibo area at 1262 will then come into play. RSI and MACD are still leaning with a bearish bias. On the flipside, a break of the 1300 level opens a run to 1350.

 

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 flirts with 1.1100 as the dollar loses steam

The EUR/USD pair bounced from a daily low of 1.1065, as demand for the greenback receded during US trading hours. Upside caped for the shared currency amid fears of a German recession, Italian political turmoil.

EUR/USD News

GBP/USD pressures recent highs amid renewed Brexit hopes

Comments from German Chancellor Merkel gave the Pound a lift, as somehow she hinted that the EU would consider an alternative to the Irish backstop.

GBP/USD News

USD/JPY slides to 106.30 area as US T-bond yields turn south

10-year US Treasury bond yield erases Monday's recovery gains. US Dollar Index preserves strength to limit pair's losses. Risk sentiment is likely to continue to drive pair's action.

USD/JPY News

Gold retreats from daily highs, continues to trade above $1,500

The XAU/USD pair took advantage of the risk-off flows earlier in the day and erased a large portion of the losses it suffered on Monday. After touching a daily high of $1,508.45, however, the precious metal lost its strength and edged lower toward the $1,500 handle. 

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Planning the next bullish move after consolidating gains

Trading cryptos is not a one-way street – meteoric unstoppable gains belong to the past. Nevertheless, the bullish sentiment seems to prevail. Digital coins advanced on Monday and are consolidating on Tuesday. 

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •