Gold prices not far off the highs, move upside to come
- Trade wars keep gold bulls in play, eyeing upside targets.
- The long game is towards the Oct 2012 highs at 1795.
Gold prices maintain their shine on the leader's board amongst the safe havens as traders continue to fear a global slowdown and the ramifications of a protracted trade dispute between the US and China.
Gold has been as high as $1,555 at the start of this week but fell short of the mark overnight with spot prices reaching only as high as $1,544.68, travelling from a low of $1,525.83. Spot had ended 1% higher on the day by the Wall Street close and currently stands at $1,542.
Indeed, weaker U.S. stocks and a drop in Treasury yields with investor's lack of optimism for progress on U.S.-China trade talks boosted the safe haven's appeal. Overnight, the gold for December delivery on Comex also rose 1%, or, $14.60, to settle at $1,551.80 an ounce which was the highest finish for a most-active contract since April 2013.
Gold levels
Bulls had dropped back below the 1525s while bulls still look to the 127.2% Fibo target located around 1,560. The long game is towards the Oct 2012 highs at 1795. On the downside, should there be some fundamental switch-up, bears can target a 23.6% retracement to 1472 ahead of a 50% mean reversion to 1401.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
