Gold Daily Analysis | DailyForex

More risk appetite translates into losses for yellow metal, one of the most important safe havens, which is happening now as gold prices fell to 1284 dollars an ounce at the time of writing. As we expected earlier and now confirm that the stability of the price below the level of $1,300 will increase losses. US dollar remains strong with positive support from Inflation figures of both Consumer prices and producer prices, as well as weekly jobless claims fell to their lowest level in 50 years. Investors' optimism has been boosted by the emphasis on negotiating to resolve the biggest trade dispute threatening the future of the global economy, and that a trade deal between the United States and China is now closer than ever.

The announcement by central banks – the European Central Bank and the Federal Reserve – of their monetary policy did not support further gains for gold prices because they confirmed their announcement from previous meetings.

The general trend will remain bearish if it stabilizes below the psychological support level of $1300. In previous technical analysis, we noted that on the daily chart below it is clear that the formation of the head and shoulders of the yellow metal, which threatens new selling pressures. The dollar's strength has contributed to gold losses, despite US economic growth slowing in the fourth quarter of 2018 more than expected.

The Federal Reserve Board announced as expected to leave interest rates unchanged. The US central bank's outlook has indicated that interest rates are likely to remain unchanged for the rest of 2019. They also announced that by September, it would not reduce its bond portfolio, a change designed to help keep long-term loan rates down. "It is time to be patient and wait and wait," Powell said, citing the global economic slowdown, not far from the United States and the continuation of trade wars.

Technically: Gold prices today, if stabilized below $1300, will increase the bearish momentum and the nearest support levels will be 1284, 1275 and 1260 respectively, which support the strength of the bearish trend. On the upside, the nearest resistance levels are 1300, 1315 and 1327 respectively. We still prefer to buy gold from every bearish bounce.

In terms of economic data: The yellow metal will all focus on the level of the US dollar. Gold will also be affected by investors' risk appetite. Gold is one of the most important safe havens.

Gold Daily Analysis  | DailyForex

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