Macroeconomic overview
Gold hit a new three-month high today, as political uncertainty in the United States stoked safe-haven demand.
Given the absence of significant data this week, the market's attention is on politics. Controversy over Trump's temporary travel ban on people from seven Muslim-majority countries has boosted appetite for bullion as a safe-haven asset.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, climbed 1.01% to 826.95 tonnes on Tuesday from Monday. Holdings rose for a fifth straight session. The rise in holdings, along with recent data from U.S. Commodity Futures Trading Commission, show an increase in long positions for managed money and a decrease in short holders.
Technical analysis
7-day and 14-day exponential moving average stay positively aligned and gold remains above them. Gold broke resistance level at 1233.00 (November 16 high) and is on the way to 50% fibo of July-December fall, near 1250.00, now.
Trading strategy
Our short-term gold position is risk free now, as we have locked in profit at 1210.00. Technical analysis suggests further rise to our target at 1250.00.
GrowthAces.com - Daily Forex Trading Strategies
Gold hit a new three-month high today, as political uncertainty in the United States stoked safe-haven demand.
Given the absence of significant data this week, the market's attention is on politics. Controversy over Trump's temporary travel ban on people from seven Muslim-majority countries has boosted appetite for bullion as a safe-haven asset.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, climbed 1.01% to 826.95 tonnes on Tuesday from Monday. Holdings rose for a fifth straight session. The rise in holdings, along with recent data from U.S. Commodity Futures Trading Commission, show an increase in long positions for managed money and a decrease in short holders.
Technical analysis
7-day and 14-day exponential moving average stay positively aligned and gold remains above them. Gold broke resistance level at 1233.00 (November 16 high) and is on the way to 50% fibo of July-December fall, near 1250.00, now.
Trading strategy
Our short-term gold position is risk free now, as we have locked in profit at 1210.00. Technical analysis suggests further rise to our target at 1250.00.
GrowthAces.com - Daily Forex Trading Strategies