Gold analysis – 9 Dec 2019

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By: Ahura Chalki

NFP Confirm Powell’s comments

Last week, gold started slowly uptrend following the uncertain trade talks to rach it’s December high above $1480, mixed economic data from the US, China, and the EU also were helping this positive move. However, by the end of the week, the equations were changed. Strong NFP (266K against 186K forecasted) and 3.5% unemployment rate, confirm Powell’s comment about the US economy, which he believes that the country has a healthy economy and if there are some concerns, it’s global economic slowdown, which may affect the US economy as well and the solution is not to cut the rate. NFP and unemployment data lowered the market expectations for more rate cut, at least in 2019. Gold printed its biggest daily decline of December to test $1458.50 from $1480. The week ahead is the Bank’s week and focuses mostly on CPI data as well as the FED interest rate decision on Wednesday. On the other hand, the US president’s impeachment also will be in the spotlight.

Technical analysis:

With all the decline of last week, still gold could not breach the main support levels of $1458 and $1452, which can confirm more decline to $1434 in the next stop. $1479 and $1482 are key resistance levels and if yellow metal wants to gain more, have to breathe these levels. Technical indicators in the daily chart, mostly remain of more bearish. RSI moves at 43, Stochastic moves downside and EMA crossing strategy also supporting the bears.

Pivot point: 1462.56

Resistance levels: 1466.45 / 1476.13

Support levels: 1452.88 / 1448.99

Today, the expected trading range is between 1452.88 support and 1476.13 resistance.


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