Spot Gold spikes to 3-mth high on risk aversion and signals of Fed rate cut
|Spot gold spiked to three-month high at $1344 on Wednesday, extending strong rally from last Thursday’s low at $1275 and approaching key short-term barrier at $1346 (2019 high, posted on 20 Feb).
Fresh advance is on track to fully retrace multi-month $1346/$1266 pullback and resume larger uptrend from 2018 low at $1160 (16 Aug).
The yellow metal’s price accelerated higher last week on signs of spreading trade war that prompted investors from riskier assets into safe-haven, with dovish comments from top Fed officials, signaling that the Fed may start cut interest rates on growing concerns about global growth slowdown.
Bulls show hesitation ahead of key $1346 barrier, as bulls started to run out of steam on strongly overbought studies.
Price adjustment may precede final attempt through $1346 pivot, with $1327 (broken Fibo 76.4% of $1346/$1266) and former high of 25 Mar ($1324) marking solid supports which should ideally contain dips and guard pivotal supports at $1316 (broken Fibo 61.8%) and $1315 (rising 5SMA).
Res: 1344; 1346; 1355; 1365
Sup: 1327; 1324; 1315; 1310
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.