On the gold’s daily chart, it seems clear that the stability of prices for four trading sessions respectively, with gains stopped around the $1427 resistance level, before settling around $1411 at the time of writing. That rally zone foreshadows a strong move ahead for the price of gold, which is closest to continuing to climb, especially as pressure continues on the US dollar amid expectations of a near date of the US interest rate cut for the first time in 10 years. This was further underscored by the testimony of Chairman of the US Central Bank, Jerome Powell, for two consecutive days before the Senate and before the US Congress, in which he emphasized that the US Central Bank is ready to cut interest rates as trade tensions persist and fears of global economic strength are directly affecting the US economic outlook.
The Gold markets did very little on Friday, rallying slightly but at the end of the day we haven’t changed much. In fact, there are warning signals with the gold market right now of a potential pullback. The weekly chart features three shooting stars in a row and that of course is not a good look. With this in mind, keep an eye on the $1380 level. If we were to break down below there it would fire off the shooting stars and send the market much lower. At that point though, I’m not a seller, I’m simply waiting.
The difference between success and failure in Forex trading is very likely to depend upon which currency pairs you choose to trade each week, and not on the exact trading methods you might use to determine trade entries and exits. Each week I am going to analyze fundamentals, sentiment and technical positions in order to determine which currency pairs are most likely to produce the easiest and most profitable trading opportunities over the next week. In some cases it will be trading the trend. In other cases it will be trading support and resistance levels during more ranging markets.
Gold markets initially tried to rally during the trading session on Thursday but then turned around to show signs of weakness. We have been consolidating in this general vicinity, as perhaps we are trying to digest the gains over the last several months.
Strong signs from the Federal Reserve of a near interest rate cut for the first time in a decade have strongly weakened the US dollar, and were an opportunity for the yellow metal to go upwards towards the $1427 resistance, and therefore, it went back to the range of highest levels in 6 years. The recent bearish correction sessions for gold had pushed the prices towards the $1386 support level during Tuesday’s session. With this announcement, we recommended buying gold.
Gold markets rallied significantly during the trading session on Wednesday after initially trying to fall. At this point, the $1390 level looks to be supportive, but more importantly we have had statements released by the Federal Reserve suggesting that they are all but settled on cutting rates. That should help boost gold, as several central banks around the world look like the Federal Reserve when it comes to keeping an easy monetary policy. In other words, hard money becomes much more interesting for traders.
The price of a gold ounce is cautiously awaiting the monetary policy updates of the US Central Bank today, stabilizing around the $1396 resistance, with losses during yesterday's session reaching $1385 an ounce. Gold is trying hard to maintain the psychological summit of $1400, which strongly contribute to the stability of the upward trend. The performance of the US dollar, which is moving inversely with the gold price, will carefully watch for what the testimony of Federal Reserve Chair, Jerome Powell, in front of the US Congress today, which will reflect on the bank's policy to promote the US economy.
Gold markets continue to grind and go nowhere ahead of the Humphrey Hawkins testimony scheduled for Wednesday and Thursday in the United States. The Humphrey Hawkins testimony is when the Federal Reserve Chairman Jerome Powell will testify in front of the United States Congress. This gives the Congress an idea on what’s going on with the monetary policy, and it is a highly impactful event.
The latest selling of the yellow metal pushed the price of gold towards 1390 dollars an ounce in morning trades on Tuesday, and despite the correction from its highest level in six years, the gold is still inside the bullish channel as shown on the daily chart below, and so far there was no clear break out of the trend. Stability around and above the psychological resistance at $1400 an ounce still supports the strategy of buying from each bearish level. The fundamentals and factors that support the gold track in achieving stronger gains remain, foremost among which is the increasing pace of global geopolitical and trade tensions, even after optimism of renewed US-China negotiations to end the biggest global trade dispute that threatens global economic growth.
Gold markets initially tried to rally during the trading session on Monday but gave back the gains to form a less than attractive looking candle stick from the bullish sign. At this point, it’s very likely that we are going to continue to show signs of uncertainty, because on the weekly chart this doesn’t look that great. On the weekly chart, we have a couple of shooting stars which is a very negative sign, and therefore shows that we probably will roll over.