Gold down on profit taking

31 August, 2017

Gold down on profit taking

Gold has pulled back in the last 3 days on the back of profit taking but by no means is the rally over with so much uncertainty around us at the moment.

At the start of the year we had a hyped up American president who promised to push through dramatic changes which have not eventuated due to some members of the US congress.

 This should remind us that there are checks and balances in the government and President Trump doesn’t have a free hand to do what he wants.

Gold was also being held back by expectations that the Fed would hike rates 4 times this year which has only turned into one, with no more expected this year.

Inflation has been a constant problem for the US central bank and according to some will also keep their hands tied as we move into next year,

“Given the fact that inflation should remain relatively low, we do not expect the Fed to be capable of doing much more than one hike in 2018,” said Luc Luyet, a currency strategist at Pictet Wealth Management

“The dollar should be penalized next year by the weaker growth outlook and by the less active Fed, so we would expect the dollar to gradually weaken and that should support gold.” He added.

Technically gold is also looking strong which is obvious by the higher top it made in the beginning of June which is followed by the recent high it made last week.

The most recent double top is going to provide a strong resistance base and should provide the point on which gold continues its uptrend


Source link  
Gold technical review

The gold price has finally stabilized today after suffering 3 days of heavy losses and we may be in the process of a double bottom formation. It seems as if the news out of Spain...

Oil set to rebound

The Oil price has finally settled in today’s trading after a week of heavy losses on the back of profit taking and some say that the price may once again head higher. Following a solid month of gains...

New sanctions won't hurt gold

The gold price is stable in early Asian trading today after falling heavily yesterday after a planned missile test from North Korea failed to eventuate...


Gold down but not out

The gold price has bounced back in today’s trading after racking up losses on the back of a deal between the white house and Congress and some say yesterday was just a small...

Oil to remain capped at $50

The oil price is making another run for the $50 mark today over concerns about the damage that Hurricane Harvey has caused, but below it will struggle...

Gold finds strong support

US President Donald Trump’s rhetoric has once again underpinned the gold price after he threatened to shut down the government at a rally in Arizona...


Gold price is stabilizing today

The gold price is stabilizing today after suffering its biggest loss in 6 weeks yesterday on the back of strong retail sales numbers from the US...

Gold down on jobs report

The gold price remains under pressure today following on from last Friday’s losses after the release of solid employment numbers from the US...

Gold technical review

As we noted in last Friday’s report the gold price would make a charge for the next resistance level of is $1,265 which it has comfortably broken over the last 2 trading session and has now...

  


Share: