Gold – More upside to come?

Gold - More upside to come? - MarketPulseMarketPulse

image

Home/Commodities/Market Pulse/Technical Analysis/Technical Analysis Commodities

Share 0

Gold pares gains but further upside could follow

Gold has also settled over the last couple of days as the initial panic has faded.

After approaching $1,300 at the start of the week – having taken some time to break $1,290, a stubborn resistance level – gold has taken a breather, albeit while barely paring gains along the way. The yellow metal looks caught in two minds at the moment, with the break below $1,280 – a major support level this year – failing to generate the downside momentum that you would typically expect.

Gold Daily Chart

OANDA fxTrade Advanced Charting Platform

The rebound hasn’t exactly been convincing either though and looks highly dependent on risk appetite in the markets remaining weak. The recent correction in the dollar has also supportive for gold over the last few weeks but that could reverse course again, with the US still in a better position that many of its peers, particularly in defensive markets.

In the short-term, there doesn’t appear to be much support for a run at the lows. The last few days has barely seen price pare its gains and as you can see in the 4-hour chart below, it looks more like a flag than anything more which is typically bullish after a strong run. Whether we can make more substantial gains is another thing.

Gold 4-Hour Chart

There remains plenty of resistance above though, with the area around $1,306-1,316 being particularly interesting. This falls between the 50 and 61.8 fib levels and contains the previous high. A break through here could be quite a bullish signal.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.

Craig Erlam

Latest posts by Craig Erlam (see all)

Original author: Craig Erlam
Real Personal Income for States and Metropolitan A...
Fiona Wilson Financial Services Limited (clone of ...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Monday, 19 August 2019
 
     
 

Latest Spot Rate

 
Wait a minute, while we are rendering the calendar
How It Works | About | Contact | Privacy Policy | Forex Marketing
© 2009 - 2019 Forex Forum. All Rights Reserved. Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.