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Gold bears looking for a break

gold-looking-break-FOREX_FXPIG
  • Gold is headed for a test of the 23.6% Fibo retracement of the mid-August swing lows to recent swing highs.
  • Bears are testing below the ascending channel's support.
  • Gold is trading at $1,314/oz, down from the day's highs of $1,327/oz having printed a daily low of $1,313.11oz.

Gold prices have been steadily declining since last week's highs of $1,343/oz and has made a fresh reversal low today following the unexpected uptick in US GDP Q4. The advanced read on Q4 US GDP came in stronger than expected at 2.6% saar vs the market's expectations of 2.2%, vs Q3 3.4%. The data superseded the risk-off mood on the news of an abrupt end to the U.S.-North Korea denuclearization talks.

News that Trump walked out of his meeting with Kim Jong Un because the two sides couldn’t reach an agreement over North Korea’s nuclear disarmament dashed hopes for an easing in geopolitical tensions," analysts at ANZ explained.

"After the meeting Trump said Kim wanted US sanctions lifted “in their entirety” in exchange for partial denuclearisation. However, North Korean foreign minister Ri Yong-Ho later disputed this claim saying they were only after a partial removal of sanctions and that they offered a realistic proposal. The summit’s abrupt end saw global equities slip. There’s been no indication from the US of whether it will consider another summit."

Gold levels

The price of gold is at a critical juncture, albeit oversold on the hourly charts and trading above its ATR of 11.01. Bears are targeting the 23.6% Fibo down at 1302 while daily stochastics lean bearish and near-term stochastics offer some wiggle room before sellers will likely come up for a breath of air. Bears will look to guard the trend line support area around 1318/20 for prospects of a break of the 1300 handle and onto the 38.2% fibo located at 1275, with the confluence of the late Jan support area.

Source: fxstreet

  • Gold is headed for a test of the 23.6% Fibo retracement of the mid-August swing lows to recent swing highs.
  • Bears are testing below the ascending channel's support.
  • Gold is trading at $1,314/oz, down from the day's highs of $1,327/oz having printed a daily low of $1,313.11oz.

Gold prices have been steadily declining since last week's highs of $1,343/oz and has made a fresh reversal low today following the unexpected uptick in US GDP Q4. The advanced read on Q4 US GDP came in stronger than expected at 2.6% saar vs the market's expectations of 2.2%, vs Q3 3.4%. The data superseded the risk-off mood on the news of an abrupt end to the U.S.-North Korea denuclearization talks.

News that Trump walked out of his meeting with Kim Jong Un because the two sides couldn’t reach an agreement over North Korea’s nuclear disarmament dashed hopes for an easing in geopolitical tensions," analysts at ANZ explained.

"After the meeting Trump said Kim wanted US sanctions lifted “in their entirety” in exchange for partial denuclearisation. However, North Korean foreign minister Ri Yong-Ho later disputed this claim saying they were only after a partial removal of sanctions and that they offered a realistic proposal. The summit’s abrupt end saw global equities slip. There’s been no indication from the US of whether it will consider another summit."

Gold levels

The price of gold is at a critical juncture, albeit oversold on the hourly charts and trading above its ATR of 11.01. Bears are targeting the 23.6% Fibo down at 1302 while daily stochastics lean bearish and near-term stochastics offer some wiggle room before sellers will likely come up for a breath of air. Bears will look to guard the trend line support area around 1318/20 for prospects of a break of the 1300 handle and onto the 38.2% fibo located at 1275, with the confluence of the late Jan support area.

Source: fxstreet

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