Gold Prices Eye Dec Low as Death Cross Takes Shape

Gold Talking Points

Gold prices seem to be on lane to exam a December-low ($1236) notwithstanding a flourishing hazard for a global trade war, and stream conditions might keep bullion underneath vigour as a strech for produce dampens a seductiveness of a changed metal.

Image of daily change for vital currencies

Gold Prices Eye Dec Low as Death Cross Takes Shape

Image of daily change for bullion prices

Market participants seem to be transfer bullion as a U.S. dollar appreciates opposite a vital counterparts, and a changed steel is expected to face headwinds via a second-half of a year as a Federal Open Market Committee (FOMC) shows a larger eagerness to exercise 4 rate-hikes in 2018.

The Fed’s hiking-cycle might continue to import on bullion prices as a executive bank is widely expected to broach another 25bp rate-hike in September, and it seems as yet Chairman Jerome Powell and Co. will take serve stairs to normalize financial process in 2019 as ‘gradually returning seductiveness rates to a some-more normal turn as a economy strengthens is a best proceed a Fed can assistance means an sourroundings in that American households and businesses can thrive.’

With that said, new cost movement highlights a risk for serve decrease as a death-cross unfolds, with a 50-Day 200-Day SMA highlighting a identical slope as they cranky over, and a bearish movement positively appears to be entertainment gait as a Relative Strength Index (RSI) pushes deeper into oversold territory.

Gold Daily Chart

Image of bullion daily chart

  • Downside targets sojourn on a radar for bullion as prolonged as a RSI binds subsequent 30, with a subsequent segment of seductiveness entrance in around $1246 (23.6% expansion) to $1249 (38.2% retracement) followed by a December-low ($1236).
  • Keep in mind, a RSI continues to lane a bearish arrangement from progressing this year and is trade subsequent 30 for a initial time given 2016, with a debility in bullion prices to insist as a bearish movement appears to be entertainment pace.

For some-more in-depth analysis, check out a Q2 Forecast for Gold

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— Written by David Song, Currency Analyst

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