|Day's Range||1,223.7 - 1,232.9|
|52 Week Range||1,223.699585 - 1,232.899658|
Gold prices edged lower on Wednesday as equities and the dollar gained amid waning risk-averse sentiment and strong reports. US Futures point to a lower open ahead of the FOMC meeting.
Gold improved on Tuesday, but the market posted an inside move, which typically indicates investor indecision and impending volatility. Traders said the gains were related to short-covering. New longs appeared to be scarce since the rally in the equity markets forced them to re-evaluate their reasons for being long.
The gold market traded sideways mostly through the Tuesday’s session as it has been trying to gain some momentum. The gold prices have shown strong upside momentum in the last several sessions and pull-back under this condition will offer a nice buying opportunity. The $1220 level underneath is an excellent support point for this market and will attract a lot of buyers into the market.
Global stocks rise on Wednesday morning after yesterday’s strong earnings reports. Investors will focus on the Fed minutes today and China’s GDP on Friday.
Based on the early trade, the direction of the December Comex Gold futures contract on Wednesday is likely to be determined by trader reaction to the 50% level at $1222.70.
Gold markets continue to grind sideways with a slightly upward tilt during the day on Tuesday, as we continue to see a lot of safety trade buying. The Gold markets have offered a bit of a safe haven as they have gotten extraordinarily cheap as of late, but at this point we are a bit overextended.
Adding to the dollar’s weakness was the consolidation of Treasury yields. After yields surged to multi-year highs last week, the rise in yields has subsided, reducing demand for the dollar. Gold improved on Tuesday, but the market posted an inside move, which typically indicates investor indecision and impending volatility. Traders said the gains were related to short-covering. New longs appeared to be scarce since the rally in the equity markets forced them to re-evaluate their reasons for being long. U.S. West Texas Intermediate and international-benchmark Brent crude oil futures settled higher on Tuesday after the American Petroleum Institute reported a surprise crude oil draw.
Gold prices attempted to move higher on Tuesday but were unable to pierce through resistance levels. Prices were unable to make a new high for October and continues to form a bull flag pattern. Gold prices were unable to make a fresh higher and continue to generate a bull flag pattern which is a pause that refreshes higher.
Traders are monitoring the geopolitical tensions over the disappearance of the Saudi Arabia journalist, however, so far the news has been limited to the political sphere. Traders essentially want to know if the Saudis are responsible. How the U.S. will respond if they are and whether there will be any retaliation from Saudi Arabia.
A cautious tone is likely to reverberate across financial markets this week as ongoing trade disputes, global growth fears and geopolitical tensions keep investors on edge.
The gold prices broke above the $1230 level in the Monday’s session as weak USD is supporting the market. The market is likely to continue going towards the $1250 level and $1220 level underneath will be offering a strong support to the market. The gold prices will continue to gain amid the uncertain global conditions and pullbacks will be a nice buying opportunity.
Gold trades flat near yesterday’s high’s as profit booking activity dampens price action for dollar denominated yellow metal in broad market amid risk averse market scenario.
Bitcoin holds on to $6,700 levels after an early dip, but with Monday’s price action over and the markets steadying, there could be some downside ahead.
Gold markets continue to levitate overall, showing signs of strength during the day on Monday. I think that the gold market continues to find strength due to the uncertainty around the world, and the “safety trade” that seems to be in effect.
A Commerce Department report on Monday showed that U.S. retail sales barely rose in September as a rebound in motor vehicle purchases was offset by the biggest drop in spending at restaurants and bars in nearly two years.
Gold prices moved higher on Monday and continues to form a bull flag pattern which is a pause that refreshes higher. A weaker than expected retail sales report released by the US Commerce Department on Monday, took some of the strength out of the US dollar paving the way for higher gold prices.Technical Analysis
As stock markets plummeted all around the globe, sentiment deteriorated sharply, and investors turned back to the well-known safe-haven – gold.
Based on the early price action, the direction of December Comex Gold the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at $1235.80.
The gold prices were sideways during the Friday’s session as the $1220 level offering a strong support. The silver market initially rallied during the Friday’s session but found $14.70 level too resistive to pull back slightly. A break above $14.80 level will send the silver prices towards the $15 level and higher.
After trading inside a $1221.40 to $1167.10 range since the week-ending August 17, the market appears to be ready to launch an even higher move if it can maintain support over $1221.40. The weekly chart indicates there is room to rally to $1277.60 before buyers encounter any serious resistance.
It may well be make or break for the Pound and the British PM and the for the EUR as Italy faces up to the Establishment on Monday.
Most Asian shares recovered during early trade despite Wall Street suffering heavy losses overnight. In Europe, stocks continue to march higher on positive global cues which could support Wall Street later in the afternoon.
The massive support level near the $1185 level has been supportive for some time, and finally this last week we witnessed buying coming into push this market higher. In fact, Thursday ended up with a $30 gain. Friday has been very quiet, which is a good sign after that type of gain.
Gold markets were pretty quiet on Friday, grinding sideways after the explosive move on Thursday. This isn’t much of a surprise, because quite frankly markets need to cool off after a move like that. I think at this point, you are likely to see the market to one of a couple different things, either grind sideways to digest gains, or perhaps sell off as profit taking occurs.
Gold prices consolidated after surging higher on Thursday driven by demand to enter into a safe haven currency. Yields edge lower allow the dollar to ease paving the way for higher gold prices. President Donald Trump was on the tape on Thursday stating that he believe the Federal Reserve was being reckless and increasing interest rates was unacceptable. Gold prices broke out of a 2-month range hitting highs not seen since early August, and then consolidated on Friday. Prices surged above resistance which is now short term support near a downward sloping trend line at 1,212. Additional support is seen near the 10-day moving average at 1,200. Resistance on the yellow metal is seen near the July highs at 1,265. Momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal.