FXEMPIRE
All

Price of Gold Fundamental Daily Forecast – Decision Time After Market Hits Objective Zone at $1284.10 to $1285.70

Given the current set up, the key level to watch the rest of the session is yesterday’s close at $1281.10. Gold is either going to regain strength over this level and make a run at breaking out over $1285.70, or its going to weaken under this level with the possibility of a retracement to $1260.80.
James Hyerczyk
Gold Bars and Dollar
Gold Bars and Dollar

Gold futures closed higher on Thursday despite increased demand for higher risk assets. Gold has been able to hold on to this week’s solid gains in spite of back-to-back strong performances in the U.S. equity markets because the dollar has remained weaker. Furthermore, the excessive volatility in the stock market suggests instability which is probably being driven by uncertainty over the lingering trade dispute with China, growing expectations of a recession and the prolonged government shutdown.

On Thursday, February Comex gold settled at $1281.10, up $8.10 or +0.63%.

Earlier today, gold hit a high of $1284.70. This move took out the July 9 top at $1284.10, but fell short of the technical 50% target at $1285.70. Traders used this area to book profits, turning the market lower for the session.

At 1259 GMT, February Comex gold is trading $1279.90, down $1.30 or -0.10%.

Forecast

The bullish price action in gold is being generated by the weaker U.S. Dollar. This trend is likely to continue as long as investors continue to sell the dollar. Stock market volatility has also contributed to the movement in gold.

With the stock market strengthening this week and gold running into resistance at $1284.10 to $1285.70, we could see a short-term pullback. Unfortunately for the bullish traders, the nearest support target is $1260.80. I don’t think we’ll get there today, but if the market finishes lower then this will signal the return of sellers.

Today’s price action clearly shows that the 50% level at $1285.70 is the next trigger point for an acceleration to the upside. The question is will investors continue to buy strength at current price levels, or will they play for a pullback into support at $1260.80?

This decision is likely to lead to a two-sided trade over the short-term. Gold will continue to get support from a weaker U.S. Dollar, but in order to trigger an acceleration to the upside, it’s going to need help from a weaker stock market.

Given the current set up, the key level to watch the rest of the session is yesterday’s close at $1281.10. Gold is either going to regain strength over this level and make a run at breaking out over $1285.70, or its going to weaken under this level with the possibility of a retracement to $1260.80.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US