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By: Ahura Chalki
Stock bouncing back, what about Gold?
Gold kept its uptrend overnight for one more day in raw at the last 5 trading days with recording new 6-years high at 1490.19. Now and at this level right before $1500, the question is that if it is time to come back or to raise more. Reasons for this sharp uptrend during the last days and in general view, during the past 9 weeks for $200, which is not that much usually, had different reasons. The trade war between two world trades Giants, slowing down in the global economy and geopolitical tensions, especially in the Middle East. None of the mentioned reasons are solved, even became worse. Trade war still going on with new issues and in new levels now, which is affected in the global economy as well and Geopolitical tensions as well, US and Iran threats against each other, North Korea launched some new missiles and China to warn the US about the deployment of mid-range missiles in Asia. And all of them bring the equities to safe havens, which gold is one of them.
From the technical side, Gold is trading so close to its 61.8% Fibonacci levels in monthly chart, drawn by its 2012 highest level at $1795.70 and the lowest level of 2015 at $1404. Trading under $1508, remain as a possibility of downtrend and crossing this level will open the door for the next level at $1560. in the H1 chart, RSi by moving above 70-level and close to 80-level overnight has an overbought sign, which is confirmed by Bollinger bands as well by crossing the upper band, however still both of them support the bullish by moving above EMA20 and MACD histograms with forming above 0-level.
Pivot point: 1468.39
Resistance levels: 1480.33 / 1486.73 / 1498.67
Support levels: 1461.99 / 1450.05 / 1443.65
The expected trading range for today is between 1443.65 support and 1498.67 resistance.
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