This post is also available in: فارسی (Persian)
By: Ahura Chalki
Trade war / Brexit, On-Off!
Lack of information about the final deal between the US and China added doubts and helped the Gold to recover above $1495. However, still, there are hopes on trade talks as well as Brexit deal, and it was the reason why Gold could not reach and pass the 38.2% of its main Fibonacci level. At the same time because of the holidays in many countries, yesterday we almost did not have economic data, while today’s busy calendar started with positive CPI from China and later we will have important data to be realized from UK, Germany and the US. Economic data from the US will be in the spotlight during this week because they will affect the next FOMC meeting about monetary policy and rate decisions. Gold, for now, will be driven with Trade Talks / Brexit as well as important economic data.
While still 38.2% of Fibonacci and intersection point of EMA200, 50, 20, somewhere around 1497.75 – 1498.20 is the main and immediate resistance level, Gold still trading under this important level, with the bearish signal. As long as Gold is trading under this level, $1479, as 50% of the Fibonacci level is next support level, which with crossing that, we will have doors open for $1460, 61.8% of Fibo. On the other hand, crossing the $1497 can take us to $1506. $1511 and $1517, respectively.
Pivot point: 1490.52
Resistance levels: 1498.30 / 1501.94
Support levels: 1486.88 / 1479.10
Today the expected trading range is between 1479.10 support and 1498.30 resistance.
Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.