Gold is trying to find support after hitting a six-month low earlier last week, most of the market players were waiting for the reawakening of the metals’ safe-haven appeal amid a complacent market in the face of trade war fears.
However, we did not see a remarkable upside price movements. There are some significant reasons for this. Strong U.S. dollar, hawkish Federal Reserve, market complacency, and gold acting like a raw commodity.
Only if any further development in the trade war rhetoric hurts the U.S. dollar, gold prices will finally be able to surge past the $1,300.
Technically:
XAUUSD ended the week at $ 1.269. As seen in the Daily Chart, EMA 50,100,200 forming Golden Cross…Strong bearish signal…
The midterm trend line is broken as well. If, tomorrow, Gold makes an upside movement and close above the trendline – somewhere 1.280 – this can be considered as a false break out. Otherwise, we likely to see the prices testing 1.250 – 1.240 region.
Key Levels for Monday:
H4 Chart Timeframe:
Upside: The first level is 1274. Break out and close above 1.274 may carry the price 1.281 where is the Midterm Major Resistance. We may start to talk about a midterm trend reversal after the Gold makes a few H4 closing above 1.281.
Downside: 1.265 – Pivot, 2/8 MM-, 1.261, 1.257 and 1.250.
We will publish our intraday trade idea for premium members later tomorrow.