Gold - $1300 is so close yet so far

Omkar Godbole FXStreet Contributor

Gold [XAU/USD] remains bid in Asia above $1290 amid risk-off in the markets and due to the debt ceiling uncertainty in the US.

Currently, the yellow metal trades around $1294/Oz levels. Prices fell to $1276 on Friday, the lowest level since August 16, before ending the week on a positive note at $1291.13.

Multiple Intraday highs above $1290

The metal first jumped above $1290 on August 11 and since then has posted multiple Intraday highs above the same. On August 18, the metal clocked a high of $1300 only to end the day on a weaker note at $1284.38 levels.

On the daily chart, we see steady higher lows; however, spikes above $1290 have been short lived. Thus, it feels like $1300 is so close yet so far.

US debt ceiling could yield rally above $1300

Trump’s inability to get things done on the debt ceiling front by mid-October could lead to US government shutdown and send shockwaves across the globe. The resulting risk aversion could easily yield strong rally above $1300 levels.

Gold Technical Levels

A break above $1296 [June high] would expose $1300. Multiple daily closes above the same could yield a sustained rally to $1337 [Nov 2016 high]. On the downside, breach of support at $1291 [5-DMA] would open doors for a pull back to $1288 [10-DMA] and $1285 [1-hour 200-MA].

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Overbought	Expanding
1H	Slightly Bullish	Overbought	Shrinking
4H	Bullish	Neutral	Expanding
1D	Bearish	Neutral	Low
1W	Bullish	Overbought	Low
Updated Aug 28, 02:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.