- Gold holds in a bullish territory in the 1500s.
- Overnight, prices were ranging between $1487.56 and $1520.00, ending on Wall Street +1.04%.
Gold holds form in early Asia following a rally overnight as the bulls continue to support on pullbacks with in the 1500s. The price of the yellow metal is bid on the basis of lingering trade-war risk and general down bat assessments of the global recovery, waning in the face of protectionism and ultra-low inflation.
Overnight, prices were ranging between $1487.56 and $1520.00, ending on Wall Street +1.04%. Futures for December gold on Comex added $8.70, or 0.6%, to $1,517.20 an ounce, following a 3.5% weekly rise last week – which was the strongest since June 21. Again, the stock-market volatility around U.S.-China trade tensions, (US benchmarks down over 1%). Underpinning the risk-off mood fell in the hands of sour European politics ahead of eurozone data today and protests in Hong Kong, all of which adds to the heightened fears over the health of global markets and economies.
“Hong Kong tensions took the limelight from trade tensions overnight, with a risk-off tone to markets as protestors in Hong Kong managed to close the airport to most flights, prompting Beijing to describe the protest actions as “terrorism”. Fear is rising that the economic damage to the region could be long-lasting, as it is far from clear how the escalating tension, now ten weeks old, is going to be resolved,”
analysts at ANZ bank explained
Gold levels
From a technical perspective, gold is holding territories not seen for more than six years above the psychologically important 1500 level. On a continuation, to the upside, the 1528/30s comes as a prior support area where the price would be expected to hold initial tests. However, on a full-on break higher, bulls will look to the 127.2% Fibo target which is located around 1,560, guarding the Oct 2012 highs at 1795. The 1800s come as the 2011 highs and the price has touched the 61.8% Fibo retracement of those highs to the late 2015 swing lows.
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