- Gold edging higher towards the final hour of trade on Wall Street as stocks decline.
- Another day of gains for gold in a series of bullish candles.
Spot gold prices ranged between $1,456.57 and $1,474.92, higher by 0.50% att he time of writing as the price takes a respite from significant rallies on the back of trade war tensions and the tremendous uncertainty which has left investors sidelined and out of risk. As for futures, the gold December delivery on Comex climbed $7.70, or 0.5%, to settle at $1,484.20, consolidating the 1.3% spike made at the start of the week where the contract closed at its highest levels since 2013.
Markets have stabilised on Tuesday, with the US benchmarks correcting at least some of the trade war rout. the S&P 500 is up +1.26% and the Dow is up by 1.37%. The Chinese have said that there are committed to not allowing the Yuan to destabilise and Larry Kudlow announced that another round of trade talks would resume again in September. Then, supporting the Dollar, Fed’s Bullard said that he doesn’t see conditions that would warrant half a percentage point cut all at once.
More upside from here
Nevertheless, this has been yet another day of gains for gold in a series of bullish candles, so far, and has only interrupted for a day following last week’s solid US Nonfarm Payrolls report and analysts don’t see an end to the upside yet. “While the global negative-yielding debt pile continues to grow, we suspect that gold could still have room to shine considering its convexity related to its zero-coupon nature and uber-long duration,” analysts at TD Securities argued.
Gold levels
The bulls have eyes on the 127.2% Fibo target up at 1,560 while holding well above the 20-day moving average and the 78.60% retracement of the recent ranges. The July swing highs of 1,453.95 were taken out and the 127.2% Fibo extension of the range between the July lows and today’s highs opens a touch off the 1,500 level. Meanwhile, on a reversion, a 23.6% retracement to the 1452 level comes into play. 1428 marks the 50% mean reversion which meets the 20-D moving average.
Share
