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GOLD Likely To Trade Higher Moving Ahead

The US dollar weakness helped GOLD to some extent recently, as it gained and traded above the $1190 level. However, it was seen struggling around the $1195 level where sellers managed to contain the upside.

please see chart attached ad post image

However, there are some support levels on the downside as well, which area likely to act as a catalyst for GOLD in the near term. Later today, the US Durable Goods Orders will be released by the US Census Bureau. The forecast is of a 0.4% rise in February 2015, compared to the last month. If the outcome fails to meet the expectation, then there is a chance of GOLD gaining ground in the near term.

There is a monster bullish trend line formed on the hourly chart of GOLD, which acted as a support earlier and might act as a hurdle moving ahead. Currently, it is trading around the 23.6% fib retracement level of the last leg from the $1169 low to $11194 high. Moreover, the same trend line is sitting just below the same area. So, buyers might step in and take the prices higher in the near term. Furthermore, the hourly RSI is just around the 50 level, and if it breaks higher, then more gains are possible moving ahead. On the upside, a break above the $1195 level might set GOLD for a test if the $1200 level.

On the downside, the highlighted trend line holds a lot of importance, as a break below the same might ignite losses in the short term.

Overall, one might consider buying dips in GOLD as long as it stays above the stated trend line.

Posted By Simon Ji of IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com/

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