If risk-on sentiment remains intact gold prices will weaken further

November 15, 2016

Gold prices remained under pressure trading around 5 month low being under pressure as U.S. elections results continued weighing on market sentiment. Majority of investors believe that the Fed will hike the rate in December that weighed on the market sentiment as well.

Current situation

Gold prices bounced off the border of the oversold zone on Monday. Sellers failed to extend decline below 1210 dollars per ounce and buyers took a chance to reverse some losses. The yellow metal broke the level 1220 and almost reached 1230 where the buying momentum lost its leg. The price faced another downside pressure and returned below 1220. Traders tested 1210 at the beginning of theNew York session. Prices traded below the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages are moving south. The resistance is at 1220, the support comes in at 1210 dollars per ounce.

MACD is in the negative territory. The RSI indicator is near overvalued territory, favoring a new move lower.

Trading recommendations

If risk-on sentiment remains intact gold prices will weaken further. A firm break below 1220 handle would open the door for testing the levels 1210 and 1200 dollars per ounce.

Publication source
Fort Financial Services information  Fort Financial Services reviews

January 23, 2017
Can Supreme Court Ruling Help GBPUSD Remain Bullish ?
Tomorrow, Tuesday 24 January, around 09:30 GMT, the UK Supreme Court will release the Brexit lawsuit Ruling, on whether the UK Prime Minister Theresa May will need the UK parliament’s approval to invoke Article 50 of the Lisbon Treaty, to leave the EU...
January 20, 2017
Cautious EURUSD Ahead of ECB Press Conference
USD, and the US government bond yields, surged last night following Fed president Janet Yellen’s speech to the Commonwealth Club in San Francisco...
January 19, 2017
Is equilibrium out of reach?
Let’s check what’s going on with Oil before turning our attention to the Russian Ruble. “Black gold” is forming a reversal pattern next to the key level of 52.10. The only matter is that this pattern is above the horizontal level, but the 52.10 level can potentially become the neckline of our pattern...

Grand Capital Rating
OctaFX Rating
Z.com Trade Rating
EXNESS Rating
FXCM Rating
FBS Rating

OptionBit Rating
IQ Option Rating
TopOption Rating
24option Rating
UKoptions Rating
EZTrader Rating