Gold Price, News and Analysis
- US dollar weakens on inflation misses.
- Gold needs to break Fibonacci retracement to be able to move higher.
The DailyFX Q3 Gold Forecast is now available to help traders navigate the market.
Gold’s Stuck Below Resistance – Higher Lows May Help
The precious metal continues to nudge higher but is finding technical resistance difficult to breach despite a helping hand from a weak US dollar complex. The greenback is nearing multi-week lows after recent PPI and CPI prints both missed expectations, while the haven bid from ongoing trade talks has also faded a touch in the last couple of days. This has helped gold make four higher-lows in a row and pushed the precious metal in between the 20-day and 50-day moving average, giving gold positive momentum.
Higher prices however are currently blocked by the 61.8% Fibonacci retracement level of the December 2016 – April 2018 rally - at $1,215.4/oz. Gold rejected this level on August 28 and September 13 but recent momentum may see another, and this time successful, attempt shortly. A break and close above would leave $1,236/oz. - $1,244.5/oz. the next target zone. On the downside, $1,204/oz. and $1,195/oz. should provide robust support.
Gold Daily Price Chart (January - September 14, 2018)
The latest IG Retail Sentiment Indicatorshows that traders remain 86.0% net-long of the precious metal,a bearish contrarian sentiment indicator. In addition, the latest CFTC Commitment of Traders report show that large US dollar bullish bets remain intact – gold negative – while large speculators are still running a substantial net-short gold position.
Are you new to gold trading or are you looking to improve your trading skill sets? We have recently produced an in-depth primer on How to Trade Gold: Top Gold Trading Strategies and Tips.
We are interested in your opinion and trading strategies for Gold. You can share your thoughts, views or analysis with us using the comments section at the end of the article or you can contact the author via email at firstname.lastname@example.org or via Twitter @nickcawley1.
--- Written by Nick Cawley, Analyst