GOLD finished on 6% low last month. That move was due to several factors, but the biggest influence had the rise of the value of the dollar: due to the uncertainty of the debt ceiling deal and the possibility of technical default of the US government, the yield of the US debt instruments increased, which stopped the GOLD rally , since it is a non-yield product.
There is still a lot of uncertainty in the US economy, which drives investors to diversify their portfolio, since GOLD provides a hedge against a economic crisis. it was also supported by today's PMI data, which had been worse than expected.
On the technical front, the instrument is still in its uptrend from the beginning of November. A smaller downtrend resistance is observed from May, but if the instrument breaks through it, it might continue further its up movement.
RSI and MACD are still in SELL territory, but both are starting to climb up.
If the instrument breaks the down trend resistance, it might go after 1974 and 1986 as a target. In the opposite scenario, if the price breaks the support, it might reach prices of 1948 and 1935.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
There is still a lot of uncertainty in the US economy, which drives investors to diversify their portfolio, since GOLD provides a hedge against a economic crisis. it was also supported by today's PMI data, which had been worse than expected.
On the technical front, the instrument is still in its uptrend from the beginning of November. A smaller downtrend resistance is observed from May, but if the instrument breaks through it, it might continue further its up movement.
RSI and MACD are still in SELL territory, but both are starting to climb up.
If the instrument breaks the down trend resistance, it might go after 1974 and 1986 as a target. In the opposite scenario, if the price breaks the support, it might reach prices of 1948 and 1935.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.