Markets Brush Off Geopolitics, Gold Nears Strong Support
Gold News and Prices
- Traditional risk markets left unmoved but worries persist as US likely to ramp up Russian sanctions.
- Gold nears technical support
Financial Markets Ignore Geopolitical Tensions for Now
Risk markets opened marginally higher in Europe Monday, despite the US, UK and France carrying out bombing raids on Syrian chemical weapon facilities late Friday. The US has also promised to impose new sanctions against Russia for supporting the Syrian regime, an action that will increase the already frosty relationship between the two countries. US Treasury Secretary Steve Mnuchin is expected to announce the new sanctions on Monday. European equity markets opened flat to +0.25%, traditional safe haven currencies the Yen and Swiss Franc were little changed while oil edged lower after last week’s bullish surge.
Gold Drifts Lower into Support
The price of gold also drifted lower in early turnover but is nearing technical support which should temper any downward move. The chart below shows 23.6% Fibonacci retracement support of the December 12 – January 25 rally at $1,335.5/oz., while the 50-day moving average currently sits at $1,331.5/oz. Further down their there is minor support from the oblique downtrend at $1,324.6. On the upside, $1,353.8/oz guards $1,362/oz. and the January high of $1,366/oz.
Gold Price Chart Daily Time Frame (August 23, 2017 – April 16, 2018)
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--- Written by Nick Cawley, Analyst
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.