Gold propped up a touch below six-year high

Gold prices end $5 short of the $1,418.70 highs scored on Tuesday.
Gold futures scored their biggest monthly percentage gain in three years.

Ross J Burland FXStreet

Gold ended the New York session at 1409, virtually flat on the day having travelled between $1,405.86 and $1,424.64. However, gold futures scored their biggest monthly percentage gain in three years, moving just shy of a six-year high scored earlier in the week.

August gold added $1.70, or 0.1%, to settle at $1,413.70 an ounce, $5 short of the $1,418.70 highs scored on Tuesday which was the highest settlement since Aug. 28, 2013. Meanwhile, attention remains focused on Saturday’s highly anticipated meeting of Presidents Trump and Xi meeting on the sidelines of this week’s G-20 meetings. The outcome of that meeting is still very much in up in the air and investors fear a de-escalation of tensions between the two world powers. Looking ahead, next week’s data should also highlight that, notwithstanding all of those trade concerns, the US and Canadian economies are coming from a point of strength.

Gold levels

From a technical perspective, the 4-HR stochastics have turned slightly more positive although there remains a mixed outlook on the charts. The daily momentum readings remain in an oversold territory in this period of consolidation. The price remains on the verge of a 50% retracement of the 20th June spike and a break there, below 1398, opens inroads to 1357.

1. R3 1427.23
2. R2 1419.51
3. R1 1414.76
PP 1407.04
1. S1 1402.29
2. S2 1394.57
3. S3 1389.82

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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