Gold remained in consolidation while yet again posting negative returns in another $40 week as geopolitical tensions eased but only to make a startling comeback in the weekend which should ensure sustained bullishness. Another reason for gold to remain directionless is the upcoming Fed decision over interest rate on 18th which will play the catalyst for further movement. Last week saw U.S – China trade tensions getting eased which was the driving factor for the negativity in gold prices but surprises ( negative ) from “Pandora’s Box” never seems to end as U.S – Iran tensions aggravated over drone attacks on Saudi Arabia which should send both oil and gold prices higher. With gold taking support of Moving Average and also adhering to the ongoing pattern its highly likely for a reversal after 3 weeks of consolidation. To watch next week – U.S Fed interest rate decision and other important data.
On the chart –
Gold continued to consolidate at the crucial pattern and moving average support as investors await the Fed’s decision on 18th. Tensions still remain after last week’s easing suggesting the demand for yellow metal might not get exhausted anytime soon. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move to $1495. If this is crossed it can rally till $1510. And if this is taken out it can rise towards $1527 and next $1541.
Short trades still remain neglected as supports are held and geopolitical tensions remains elevated but come into play once the support breaks.
Bullish view – Bulls had another tough week as they failed to hold on to $1500 on growing optimism over further easing of trade tensions. But all is not lost as the support got respected twice suggesting demand at lower levels. The U.S Fed rate decision should act as the key for the bulls to remain on track for further gains. For bulls to remain on the driver’s seat they need to defend the supports, till the supports are held new highs cannot be ruled out given the global situation of increased geopolitical risks.
Bearish view – Bears successfully pulled the price back below $1500 but failed to break the support. For bears to change the trend their favor they need to break through the supports like they did breaching $1500 on downside.
On larger terms, Gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1495 for the targets of $1510 and $1527 with a stop loss placed below $1482. Longer term target $1541.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
On the chart –
Gold continued to consolidate at the crucial pattern and moving average support as investors await the Fed’s decision on 18th. Tensions still remain after last week’s easing suggesting the demand for yellow metal might not get exhausted anytime soon. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move to $1495. If this is crossed it can rally till $1510. And if this is taken out it can rise towards $1527 and next $1541.
Short trades still remain neglected as supports are held and geopolitical tensions remains elevated but come into play once the support breaks.
Bullish view – Bulls had another tough week as they failed to hold on to $1500 on growing optimism over further easing of trade tensions. But all is not lost as the support got respected twice suggesting demand at lower levels. The U.S Fed rate decision should act as the key for the bulls to remain on track for further gains. For bulls to remain on the driver’s seat they need to defend the supports, till the supports are held new highs cannot be ruled out given the global situation of increased geopolitical risks.
Bearish view – Bears successfully pulled the price back below $1500 but failed to break the support. For bears to change the trend their favor they need to break through the supports like they did breaching $1500 on downside.
On larger terms, Gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1495 for the targets of $1510 and $1527 with a stop loss placed below $1482. Longer term target $1541.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
Trade active
Comment:
First long target met at $1510