GOLD: Holding Near Highs After This Weeks Surge. 1509 Key

Intermediate

GOLD broke the 1500 level for the first time since 2013, a psychologically important figure.

  • In our prior post we highlighted topside targets to GOLD as the precious metal pushed out of a consolidation pattern.
    • Safe haven demand has underpinned GOLD amid rising global trade tensions and as the global economic picture becomes more gloomy. Central banks across APAC have cut rates more than expected with a shock from the RBNZ.
  • Our first target, set at 1486.85 was hit earlier this week. This now brings our 2nd target, at 1537.11 into view.
  • On the technical front, GOLD has overcome key resistance at 1483.07, 50% retrace of the 2011-2015 selloff. This is now seen as support and may offer buying opportunities. 
    • A lower support is seen at 1452.60 (July high) if the aforementioned level fails to hold. 
  • Market has paused at a robust long-term fibo. The 61.8% fib retrace at 1509.25 has limited this weeks surge.
    • Close > 1509.25 could see a greater bullish backdrop materialise.
  • Trending & momentum setups confirm the bull view with both our EMA’s and MACD trending higher. 
    • Price action has caused an overbought situation with our near-term 21 EMA (at 1445) and this is supported by the overbought RSI (at 73). Retracements lower would correct this situations and likely offer further buying opportunities.
Gold Chart 2019-09-10

Akif Din

Editor

Akif SH. Din MSTA, CFTe, 2018 Bronwen Wood Memorial Prize Winner, has a solid understanding of global markets, fundamental analysis as well as having a vast amount of knowledge in technical analysi...continued

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