Gold analysis – 28 Jun 2019

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By: Ahura Chalki

Economic reason or emotional market?

While Gold closed the last trading day at the same level which it had open, over $1409, overnight it continued to test over $1424, the same level which market used to start the trading day on Tuesday. The Gold price after breaking 38.2% Of Fibonacci levels, several times and testing under $1400 level as well, returned back over 23.6% Fibo again due to USD stepping back from its 23.6%Fibo level after trading above the level for few hours. USD faced with very mixed data yesterday with the remaining GDP number at 3.1% as a number of expected and raising the initial jobless, more than expected to 227K from 217K of last week. At the same time, negative data from the EU also increased concerns in the market mostly from the global economic growth and helped the market to be more sensitive and emotional. However, the G-20 summit keeps the hopes alive for positive talks and agreements, especially between the US and China, which helped the stock markets as well to hold themselves in a positive move, which if it happens, which push the Gold price deeper.

From the technical side, and in the H1 chart, while Gold could not touch the key levels of $1425 and returned back do downside before that, to confirm more bullish, it needs to break this level first, RSI Still moves above 50 level, but just turned back down from almost 80-level with slope down movement. Stochastic confirming downside move with breaking down the signal line for the 3rd time in the overbought area.

 

Pivot point: 1406.72

Resistance levels: 1414.86 / 1420.17 / 1428.31

Support levels: 1401.41 / 1393.27 / 1383.96

The expected trading range for today is between 1393.27 support and 1428.31 resistance.


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