Gold analysis – 16 Jan 2020


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By: Ahura Chalki

The Trade Deal, and Next?

After a long story, finally, the Phase-One trade deal has been signed, but whatever it is, is not what investors were waiting for. Just 50% is reducing in tariffs in exchange for a certain amount of American products and services to buy by China and accepting intellectual property rights by China. However, Risk-Of situation still on the table as the Chinese official mentioning that buying the American products will depend on market conditions and not to buy, just to buy! Also, China’s Vice Primer “Liu He” also mentioned a very important point there, by saying that the correct choice for the US to remove China from the currency manipulator list. We are still waiting to see the market reaction by opening the US market. So far, in the Asian season, it seems markets do not feel that as what they were expecting. Shanghai falling 0.26% in the time of writing, while other Asian Markets, almost are flat. However, how media in the US will sell this deal also will be important and for that, we need about 10 hours to find out! For now, market sentiment are better than day before but not as good as it was expecting.

Gold technical analysis:

In the H1 chart, technical indicators turning into the negative mode. RSI moves at 49, with the soft descending slope, Stochastic support the downtrend and market volume is lower. But, this downtrend is not that much trusted, since Parabolic SAR and EMA crossing strategy are still supporting the bulls. to be able to confirm the downtrend, the price must move under $1547.50, where EMA 50 and 200 in the H1 chart sitting on each other. In return, trading above $1557, can change the direction.

Pivot points: 1554.28

Resistance levels: 1561.67 / 1565.53

Support levels: 1550.42 / 1543.03

Today, the expected trading range is between 1543.03 support and 1565.53 resistance.

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