Gold gained momentum; USD is losing again! 

Time to sell?

By: Ahura Chalki

Market analyst – IFC Markets

The new week started again, lowering the Bonds Yields and USD, which again helped the Gold to keep rising, in the background of increasing the market risk, with new restrictions in New Delhi and some other parts of the globe. Earlier today, the yellow metal reached the 1,790.00 level, the highest level since February. The next target can be the psychological level of 1,800.00 marks.

Fundamental data and news, as long as stock markets are rising, can not help the Gold’s bull gain more. On the other hand, the considerable cash pumping into the markets can add the doubts about the future of stock markets rising much more than before between the investors, which probably will cause a pause or even decline in the stocks in the mid-term, and it must be supportive for Gold. 

From the technical review, as you can see in the bellow figure, 1,744 is the critical level in the weekly chart for Gold, while the Daily chart is also adding 1,722 as a Key support level. Also, in a smaller timeframe like H1, there is a discrepancy between the price and the momentum indicator (Divergence), where both the MACD and the RSI begin to move lower. Trading above or lower than these rates can make it clear where Gold next move goes. 

Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, considering your investment objectives and level of experience, before trading, and if necessary, seek independent advice.

Related post