Safe haven buying in gold

16 November, 2015

Gold, Daily

After the dreadful events in Paris the market participants are once again turning to the oldest of safe haven plays, gold. This morning gold price jumped higher with a gap opening and is trading now 1.25% higher than it closed on Friday. Such a strong opening after price has found support from a previous low is usually a sign of higher prices to come. Another factor that’s likely to have played some role in today’s gold rally is the fact that Japan’s GDP tumbled 0.8% in Q3 (q/q). The drop was much larger than anticipated and comes in the context of Japan, one of the largest economies in the world slipping yet again into a recession.

While writing this Gold almost reached the nearest resistance level at 1097.70 and reacted lower. The next resistance level is at 1103.80 while the 1073 level is the nearest significant daily support. These nearest resistance levels coincide with the 23.6% Fibonacci support level at 1101.20 (as drawn from the October high to the latest low), and the 50% Fibonacci retracement at 1132.50 coincides with a 50 day SMA.

A break above the 1103.80 resistance could bring the 50% retracement level into play but I’m interested on price reactions at supports after a possible pull back closer to supports. If price pulls back at or below 1089 we should be looking for long entry signals as per my teachings in the webinars. Should this happen the proximity of 50% Fibonacci level and the moving averages at 1133 and 1139 act as a target area for swing trades, while short term traders might want to consider 1097 to 1103 as a target range.

Source link  
Stock markets were underpinned

Asian Market Wrap: Core yields moved higher and stock markets were underpinned as Trump tweeted enthusiastically about the summit with North Korea's leader...

Gold spikes to near two-week tops

Last week’s recovery move supported by persistent USD weakness. Reviving safe-haven demand/subdued US bond yields provides an...

Gold falls at Friday close to 1275

The key commodity was pivoting around $1285 with support at $1282 and resistance around 1286. The London close, put pay to that as a raft of futures...

Stock market recovery continued

Still, U.K. and U.S. futures are also moving higher, indicating that abating fears over North Korea are keeping markets underpinned, while earnings optimism...

NZDJPY beneficiary of Asian session

With a the NZD is overvalued on one side and Sabre rattling between North Korea and the US continuing overnight there was really only...

Euro above 1.18 against the dollar

Asian stock markets moved higher, with a rally in banks underpinned by earnings reports and helping to offset pressure on exporters and automakers...

Gold support at 1258 but rolled over 15m

Gold remains bullish having posted at high over 1265 yesterday. My bias remains long and I entered again at 1258 last night. However, the intraday...

FOMC held rates steady

The Fed’s reluctance to commit to a time for QT beyond “relatively soon” and the fact that the Fed appeared to be moderately more concerned...

FOMC decision to outline its balance

U.S. markets will have a lot on their plates this week as they continue to assess the June jobs data, global developments in the aftermath of the G20 meeting...

In the past 24 hours Bitcoin has gained 6.63% and reached $3754.39442294. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.0395% and is now at $1.1371. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 13.56% and is now at $102.308240636. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group84%