Gold could go back down - page 3
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A breakout above 1108 might mean that it will climb even higher though.
Gold is being affected by global risk aversion, if risk appetite does not comes in again soon, then gold may try to visit the high at 1113 again. To the downside, the 1088 may act as support.
I think it might even reach 1076 if it moves to the downside.
Expecting a correction to the upside.
Gold has come to some better levels but the boom dosent ssem to be in strong hands. With further Federal reserve rate hike postectus, that they have estimated to raise its interest rate 4 times upto 100 basis points. This will again pressurize precious metals to touch the lowest level of $1045. After this the strong support lies $50 away at $995. Later till the mid of the year due to appreciation in dollar we might see some positiviety in the bullion. but till them gold seems to trade on weaker angle. Prices sustaining above $1110 might give some light to technical trades, while overall fundamentally its very weak.
Gold has come to some better levels but the boom dosent ssem to be in strong hands. With further Federal reserve rate hike postectus, that they have estimated to raise its interest rate 4 times upto 100 basis points. This will again pressurize precious metals to touch the lowest level of $1045. After this the strong support lies $50 away at $995. Later till the mid of the year due to appreciation in dollar we might see some positiviety in the bullion. but till them gold seems to trade on weaker angle. Prices sustaining above $1110 might give some light to technical trades, while overall fundamentally its very weak.
I think that the Euro to gold correlation is strong now. Whatever happens to Euro will happen to gold too
Gold is headed back for the resistance at 1109 and a breakout above 1113 might mean that it will continue rising towards 1120 - 1130.
I think that the Euro to gold correlation is strong now. Whatever happens to Euro will happen to gold too
yeah euro to gold correlationo is stong enough on the back of pressure from downfall in US economy and Fed interest rate hike pressure but history speaks that gold catches its movement against the dollar index and 60% of the dollar index holds it build with Euro. Till the time of speculation of fed rate hike we can hold this correlation to impact more. With increasing stimulus from ECB with might see more pressure on Gold.
Gold is headed back for the resistance at 1109 and a breakout above 1113 might mean that it will continue rising towards 1120 - 1130.
You may be right but Gold reacts more to fundamentals than technicals and also the recovery is not from the strong hands. It’s all because the global sentiments for equity markets have gone lot weaker. All the major indices in the world are trading at their lows but there is no strong reason behind this. Its not that we are facing recession that we saw in 2008, there is no global movement that reminds of financial crisis. We have seen major central banks taking strong steps to grow their economic conditions. Gold is rising on safe haven bids, but once we see the recovery is global markets gold might again touch to its lower levels of 1060-1050.
The rallies in the precious metal or safe haven assets is usually short lived and the same I am expecting for the precious metal. The rout in financial markets overall be it Wall Street, China or the European economy, gold has found a strong support. but now as ECB has announced further monetary easing in Europe and now the earning in the US market is supporting the Wall Street to rebound will hurt the prices. Good macro data of US will raise the hope further hike in interest rates and this year being an election year there will definitely be a rebound in stock market which will dent the yellow metal prices in the future. The current bounce can be termed as dead cat bounce.