GOLD: Price Increases As Gold Is Seen As A Safe Haven
Last week proved to be a solid week for Gold with the metal making considerable gains and finally reaching the 1245.00 target and extending to peak at 1250.86. Since then there has been a mild corrective pullback throughout most of Monday. If the new found support zone 1243.00-1245.00 cannot hold then next immediate support is 1235.00 then the more significant level 1225.00. These support floors are crucial areas to observe in the coming days for a bullish reversal as Gold looks to extend its bullish run in light of recent world events. Golds immediate upside target is 1260.00 and should this be smashed then July highs of 1284.00 are likely going to be next in line.
Underlying fundamentals to Golds recent strength are due to increased safe-haven demand with world stock and financial market traders still very uneasy.
World stock markets were predominantly lower on Monday including US stock indexes. Uneasy US-China trade talk prospects and new documents released at the end of last week strongly suggesting very high-level Trump Presidential campaign staffers colluded with Russia have traders and investors hesitant to dive into the week.
To conclude my overall near-term bias for Gold is certainly Bullish, we may have seen a brief rally in DXY on Monday following Theresa May calling of Tuesdays vote on her Brexit plan but the Greenback is stalling at 97.22 at the time of writing this article which is an area in which we have seen multiple selloffs in recent weeks, that coupled with approaching the underside of a recently broken Bullish trend line as new-found resistance the Index is unlikely to find momentum to sustain this drive in price. Thus providing the precious metal with a smoother path to higher value.
Written by Sam Moore
Instagram - @Moore_Fx...