FUNDAMENTALS:
Gold prices might see some more consolidation next week as the metal’s safe-haven allure continues to lose traction, according to analysts. But, the Federal Reserve meeting could offer surprising support to the yellow metal.
Even bullish gold analysts are admitting that the precious metal could retreat a bit further next week, especially after commodity markets chose to ignore another North Korean missile strike and a London terrorist attack on Friday.
Levels To Watch: $1,300 To Hold: XAUUSD GOLD Forecast
Despite fears of profit taking in gold, the precious metal will hold above $1,300, Lawler said. “Immediate support level is $1,316 and resistance is at $1,350. If we close above $1,350 that would be a sign of good things to come.”
Colin Cieszynski, chief market strategist at CMC Markets, expressed a similar view, noting that “$1,300 is not only a round number but also got Fibonacci support.”
He added that “gold came down quickly, which eased overbought conditions, but upward momentum is still slowing at this point.”
McKay is looking at $1,307 support and $1,350-$1,375 resistance. “It will be tough to break above $1,375 unless we have the Fed come out and say that they are not going to be as hawkish, pointing to two hikes instead of four.”
As of Friday afternoon, the yellow metal was trading near daily lows, with December Comex gold last seen at $1,325.30 an ounce, down 0.30% on the day.
Technical Analysis:
The gold price closed the week at 1.319.70 level. This was the Fibonacci Retracement 61.80% on H4 Chart as seen below. And it is also MA 100 support.
Stochastic Oscillator of Daily Chart is telling us that downward movement may continue for a while. Below the current level, 1.312 and 1.306 USD levels are very important to support the XAUUSD price. A daily closing above this level can carry the price towards 1296.
I believe green or blue uptrend line on Daily Chart will be the support and price will bounce back from one of those lines.
Above the current level, there are two important resistance levels. 1325 and 1135 are the resistance. Especially 1335 is very important because GOLD tested this level twice but failed to break out.
Our strategy is clear. We believe that XAUUSD will test 1380 USD in a few weeks. So we will use pullbacks as buying opportunities. There is only one option to break out this scenario: FED Rate Hike Suprise. The price will drop down towards 1260 USD in this case.
The good part of our GOLD story is that we entered the LONG trade from 1220 USD and we have had enough profits in our pockets. So we keep an eye on support levels and FOMC meeting. We are still BULLISH.
Gold prices might see some more consolidation next week as the metal’s safe-haven allure continues to lose traction, according to analysts. But, the Federal Reserve meeting could offer surprising support to the yellow metal.
Even bullish gold analysts are admitting that the precious metal could retreat a bit further next week, especially after commodity markets chose to ignore another North Korean missile strike and a London terrorist attack on Friday.
Levels To Watch: $1,300 To Hold: XAUUSD GOLD Forecast
Despite fears of profit taking in gold, the precious metal will hold above $1,300, Lawler said. “Immediate support level is $1,316 and resistance is at $1,350. If we close above $1,350 that would be a sign of good things to come.”
Colin Cieszynski, chief market strategist at CMC Markets, expressed a similar view, noting that “$1,300 is not only a round number but also got Fibonacci support.”
He added that “gold came down quickly, which eased overbought conditions, but upward momentum is still slowing at this point.”
McKay is looking at $1,307 support and $1,350-$1,375 resistance. “It will be tough to break above $1,375 unless we have the Fed come out and say that they are not going to be as hawkish, pointing to two hikes instead of four.”
As of Friday afternoon, the yellow metal was trading near daily lows, with December Comex gold last seen at $1,325.30 an ounce, down 0.30% on the day.
Technical Analysis:
The gold price closed the week at 1.319.70 level. This was the Fibonacci Retracement 61.80% on H4 Chart as seen below. And it is also MA 100 support.
Stochastic Oscillator of Daily Chart is telling us that downward movement may continue for a while. Below the current level, 1.312 and 1.306 USD levels are very important to support the XAUUSD price. A daily closing above this level can carry the price towards 1296.
I believe green or blue uptrend line on Daily Chart will be the support and price will bounce back from one of those lines.
Above the current level, there are two important resistance levels. 1325 and 1135 are the resistance. Especially 1335 is very important because GOLD tested this level twice but failed to break out.
Our strategy is clear. We believe that XAUUSD will test 1380 USD in a few weeks. So we will use pullbacks as buying opportunities. There is only one option to break out this scenario: FED Rate Hike Suprise. The price will drop down towards 1260 USD in this case.
The good part of our GOLD story is that we entered the LONG trade from 1220 USD and we have had enough profits in our pockets. So we keep an eye on support levels and FOMC meeting. We are still BULLISH.