GOLD: What goes up must come down
Hi Traders and welcome back to EverythingFX.
Gold is currently trading at $1426.88 per ounce against the Dollar during today's London session.
Starting on the monthly timeframe, all I can say is wow. A clean tweezer bottom bullish engulfing and price absolutely broke every resistance in its way. With the highly anticipated 1350 barrier, most expected a rejection once again. Price has since rallied over 800 PIPs past that level of resistance spiking into the highs of $1440. On a technical standpoint, some sort of retracement would be needed to then evaluate where we heading next! There are several levels of support in and around 1350-1400 where we could expect price action to come and re-test before obtaining a further bias.
There is one main driving force behind Gold right now and that is the Global economic uncertainty. With tensions between the US and Iran, investors have since shifted to a safer alternative. With the Fed starting to turn more dovish we remain seated at the edge of our seats for clues of when they would look to cut interest rates if they still do. With there being so much political pressure on the Fed by President Donald Trump it will be interesting to see what happens next. Stay tuned to our market news section and social media for further updates....