What could possibly pose a threat to Gold gains? Examine carefully the latest 2 February Gold Price Technical Forecast to see.
2 February, GKFX – Gold is up almost three percent in 2018, trading just beneath 1,350.00 today during Tokyo, spurred on by a weaker US Dollar.
- Gold gains on US Dollar woes.
- US Treasury yields remain a threat to Gold gains.
The usual relationship between Gold and US bonds seems to have broken down as of late; rising US Treasury yields normally depress Gold prices, but that relationship hasn’t manifested itself in 2018, with Gold reticent to spend much time below 1,335.00, implying that Gold’s run up the charts since mid-December owes itself entirely to the weakening position of the Greenback.
The USD had a rough year in 2017, falling in global markets as economies around the world improve, and the political situation within the US begins to show strain. ‘Gold bugs’ should be wary, as a reprieve from the bearish bias against the USD could see Gold prices dragged back down to the 1,300.00 mark, especially if a better-than-expected Non-Farm Payrolls report at 13:30 GMT proves to be an enticing-enough boon for currency markets to price in a little bit of confidence in the American economic picture.
2 February Gold Price Technical Forecast
Gold’s high for the day so far is 1,351.10, but this level was rejected early in Tokyo and price looks set to gear up for another run at the level, with swing resistance at 1,347.75; on H4 charts, price could find resistance-turned-support at 1,340.00, with 1,360.00 being the price to break for further moves up in Gold values. Price is toiling with the 50.0% Fibo retracement level as of writing, with the 61.8% level at 1,354.00 just above it.
This article 2 February Gold Price Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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