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.

Ross J Burland FXStreet

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.

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