Gold analysis – 12 Dec 2019


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By: Ahura Chalki

After FED, before Tariffs starting!

$1474- 5 is the key resistance area, which yellow metal is trading at that and waiting for US decision about planned tariffs for the Chinese goods, starting from 15. Dec. After no change in rates, Powell’s dovish comments in the press conference, send DXY deeper and Gold higher to test the daily high and key resistance at $1479. USD trading in its one month low at $97 with signaling more bears ahead. What moved the markets, it was the Powell comment about raising the rates, while the market was waiting to see that in earlier months in 2020. Chair Powell’s repeat of the “We’ve just touched 2% core inflation to pick one measure, & then we’ve fallen back. So, I think we would need to see a really significant move up in inflation that’s persistent before we would even consider raising rates to address inflation concerns,” (Reuters). This comment sent the DXY deeper and was the reason for the gold rally. Now, the market turned the focus on Trump decision, will he postpone the scheduled tariffs as he did once before to help the negotiations to get to any point, or not. On the other hand, the UK election also is matter today. Labor part winning or a lower majority of Tory in the House will help the Gold’s bulls.

Technical analysis:

Despite all changes in the market, Gold still trading in its sideways channel. $1482, and $1452 are key Resistance and support levels to avoid this side movement. In the H4 chart, technical indicators still supporting the bulls. RSI moves at 64, Heiken Ashi candles are clearly green and positive while Renko chart also confirming the bullish.

Pivot point: 1472.58

Resistance levels: 1482.54 / 1488.92

Support levels: 1466.21 / 1456.26

Today, the expected trading range is between 1456.26 support and 1488.92 resistance.

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