Gold: Still holding a medium to longer term positive outlook [Video]
|Gold
The sharp sell-off from Friday has moderated and the market is looking to rebuild again. We still hold a medium to longer term positive outlook on gold and do not see Friday’s decline as an outlook changer. On the contrary, as long as the broader market panic selling does not re-appear then gold should find support (the sell-off was apparently as a result of forced selling amidst broad portfolio margin calls, rather than a negative view on gold). So, with effectively a doji candlestick yesterday (denoting uncertainty with the recent trend lower), we see this as a stabilising signal. The market is ticking marginally higher today to add to this. The RSI is back around 50, which has been buying opportunity levels within the 10 week uptrend which is still intact. Closing back above the 38.2% Fibonacci retracement (of $1445/$1688) at $1595 would be a positive signal, but the bulls need to get back above $1611 to really suggest the positive trend is decisively resuming. Friday’s spike low of $1565 is key support, with $1579 (yesterday’s low) also a minor higher low.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.