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

15 November, 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.


Source link  
EUR/USD stays in a short-term upward

Buyers broke the level 1.0750 in the night and stopped after reaching 1.0777...

The USD/JPY gapped higher at the open

If the price overcomes 104.50 we will neutralize our medium term negative outlook. Buyers may extend their gains towards 105.00. Alternatively, bears may push the price below 104.00...

Gold will grow towards 1290 dollar per ounce

The level 1270 limited the further decline of the metal. A cut through here will aim at the 1260 level. If the current support rejects the price the XAU/USD will grow towards 1290 dollar per ounce...


Brent prices got under pressure following the IEA forecasts

Brent seems to have found a solid support at 47.50 which slowed down its decrease. The price slightly rolled back and stopped a few pips above the level in the European session. The quotes returned to a decrease in the North American session...

The crude oil futures are under pressure

Brent kept falling after a rise in U.S. crude inventories. Moreover, traders focused their attention on a world supply glut which keeps weighing on the oil prices...

Gold decrease will continue

During yesterday's trading, gold price sharply dropped breaking and consolidating below the level of 1335, -1336. We expect the gold decrease will continue. Next support is around 1315 to 1309...


Gold is testing the lower boundary

Amid US dollar gains, the gold price have made an attempt to exit dawnward from the medium-term channel 1.1336-1.1358...

Bears seem to have the ball now

The Brent got under pressure yesterday due to the returned concerns over the oversupply. Besides, the price retreated when traders began closing their long positions...

The dollar attracted everyone's attention

The pair presented a modest bearish tone during the day. The trading instrument spent the day at the level 1.1000. However, the pair grew after the Fed meeting results announcement. The resistance is seen at 1.1030, the support stands at 1.1050...

  


Share: