Gold holds the rising support line having been capped by 2.618% Fibo extension
|- The price of gold is firming up again following a correction of the recent yearly highs.
- On the upside, 1440 and 1450s are key near-term targets.
Gold prices are firm in the $1425s / $1426s in early Asia with plenty of geopolitical risks providing a cushion for bulls on downside corrections. Indeed, the yellow metal was fairly strong overnight as the USD and rates weakened - Gold prices ended the New York session bid, higher by 0.42% at 1423 while closing below the highs of the day that were marked at 1429.52 on a spot basis. Gold futures also ended higher, taking cues from negative data across the macro arena, nailing down expectation of a new easing cycle at the central banks, August gold on Comex gained $1.90, or 0.1%, to settle at $1,423.60 an ounce, well off the highs for the session of $1,430. Prices declined by 0.4% on Tuesday.
Besides trade wars and Iran, North Korea has placed itself firmly back on the risk radar. In recent trade, there has been news that two unidentified projectiles were fired into the East Sea as North Korea gets frustrated by lack of progress in talks with the US. The launch appears to resemble the May 2019 firing of two short-range missiles, which travelled approximately 260 miles and was fired from the Wonson area.
"Our military, in preparation for additional launches, is maintaining (its) readiness posture by monitoring related movements,"
an official in the South Korean Joint Chiefs of Staff office said.
Gold levels
Gold prices have fallen through the 50% Fibo retracement of the June/July triple bottom swing lows and the recent swing highs range. This is located at 1417, just below the session low of 1416. The next target comes as 1400. We have a confluence of Fibos lining up at 1398 ahead of 1382 swing lows. Below there, the 1,373/76 zone comes into play which meets the 19th June spike correction lows. On the upside, 1440 and 1450s are targets.
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