Gold Prices Gain Momentum to Conclude Weekly Trading
- Gold Prices Gain Momentum to Conclude Weekly Trading
- Intraday Resistance is Found at $1,233.53
- Looking for additional trade ideas for gold & other commodities markets? Read Our Market Forecast
Gold prices have gained considerable bullish momentum this week after finding support above $1,200.00. This rise has been heavily influenced by the outcome of Wednesday’s FOMC event, and now traders are looking at today’s U. of Michigan Confidence survey data for further direction. Expectations for today’s release are set at 97. As a high importance event, it is expected to increase volatility in US Dollar based markets which includes commodities such as Gold.
Technically gold prices are now trading higher in the short term, after bouncing back about the displayed 10 day EMA (exponential moving average) earlier in the week. This line is found at $1,218.69, and is currently acting as a value of support for gold. If prices continue to rally, traders will look for the commodity to again approach standing 2017 highs near $1,264.06. If prices fail to break through this point, it may suggest that gold prices are simply retracing before trading back in the direction of the metals longer term trend.
Gold Price, Daily Chart with Averages
Intraday analysis has the price of gold trading above its central pivot found at $1,226.83. If prices continue to rally above this point, gold will next find resistance against today’s R1 pivot at $1,233.83. A breakout above this point further exposes the R2 and R3 pivot found at $1,240.55 and $1,247.25 respectively. It should be noted that if gold prices reach either of these pivots, the commodity would then be setting a new weekly high to close the week.
In the event of a bearish price reversal, traders should look for gold to first trade back below today’s central pivot. A move below this values exposes the S1 support pivot at $1,204.78. A move to this point should be seen as significant as gold would be trading back below the previously mentioned 10 day EMA. A close below this point would signify a bearish shift in momentum to close this week’s trading.
Gold Price, 30 Minute Chart & Pivots
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.