Increased tensions surrounding Syria and the United States boosted demand for gold this week, with the yellow metal moving ever closer to a multi-year upside technical breakout. At the moment, what level is the precious metal currently trading? Read on as the 13 April Gold Price Trading Analysis reveals.
13 April, OctaFX – The value of spot gold traded as high as $1,360 per ounce at one point, after U.S President Donald Trump threatened a possible missile strike against Syria.
Gold Safe Haven
Gold has long been sought after as a safe-haven asset class in times of geopolitical uncertainty, investors will often move into the perceived safety of gold when the U.S dollar is becoming a less favourable alternative.
Against the backdrop of Wednesday’s hawkish FOMC meeting minutes, receding geopolitical tensions might continue to dent demand for traditional safe-haven assets and keep a lid on any meaningful up-move for the non-yielding yellow metal.
Meanwhile, a continuous improvement in investors’ appetite for riskier assets, as depicted by positive trading sentiment around equity markets, the commodity seems vulnerable to extend this week’s sharp retracement slide from YTD highs touched on Wednesday.
13 April Gold Price Trading Analysis
Spot gold remains bullish while trading above the $1,330 level, further upside towards $1,375 and $1,388 appears possible.
Should price-action trade below the $1,330 level, a deeper correction towards the $1,318 and $1,303 levels may occur.
This article about 13 April Gold Price Trading Analysis was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.
Also, speculative trading is a challenging prospect, even to those with market experience and an understanding of the risks involved.