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By: Ahura Chalki
Looking for new reasons for bulls?
Gold price and level of risk in the market always have direct relation, as much as risk is higher, gold price goes higher. The exact reason for the historical high for gold in 2019. However, it is more than a week now that gold lost two very important reasons to get support for its bulls. Brexit’s uncertain situation now is totally clear, House confirmed Jonson’s agreement with the EU to leave the union on January 31. In the Trade front, Phase-one seems to be done and as “Steven Mnuchin” to claim that it will be signed in early January 2020. Another reason for Gold bulls could be rescission in stock markets, which is not and they do reach new record highs every week. What is clear here that buyers taking a huge risk, as of year-end we can see lower risk in the market and green stocks, while usually right before the new year, the new buyers are not jumping into markets. However, there can be two reasons, which will push the market forward, otherwise, we must see likely downtrend by the end of 2019. First, sharp red Candles or at least corrections with larger points in stock markets and second, increasing the trading volume by buyers, and holding the current positions for next year.
Gold Technical Analysis:
Technical indicators mostly remain of more bullish at this level, while trading volume shows decreasing, in the hourly and daily chart. The key immediate resistance level is $1482, which breathing this level and confirmation with $1484, can push the green candles forward while breaching the $1478 and confirmation with $1474 and $1472 can change the trend lower and down.
Pivot point: 1478.23
Resistance levels: 1480.70 / 1483.41
Support levels: 1475.56 / 1473.04
Today, the expected trading range is between 1473.04 support and 1483.41 resistance.
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