A Strong U.S. growth data and Fed Chair Yellen’s upbeat view of the economy has an impact on Gold as the 30 November Gold Technical Analysis shows.
30 November, HotForex - GOLD prices are trading lower early Thursday, influenced by strong U.S. growth data and Fed Chair Yellen’s upbeat view of the economy. The precious metal fell yesterday significantly by a reportedly $6 bln nominal sale ahead of the U.S. GDP announcement. The key commodity fell from near $1,294.00 to $1,285.00.
30 November Gold Technical Analysis
Modest dollar strength after the GDP data continued it closed the day below the 50-day moving average and right on the 20-day moving average at 1283.50, a six-day low.
This level breached the important 200-period moving average on the H4 chart and triggered a short position with target 1 at 1279.00 (14-period ATR) and target 2 1273.60 at the recent H4 low.
The RSI is 34 and falling, the parabolic SAR remains negative and the widening Bollinger bands suggest further weakness. Resistance to further moves lower at the recent Fractal low at 1281.50. A reversal back over 1299.00 would negate this move.
Nevertheless, Gold remains in a position to close higher for November. Short-term, gold gains should be limited based on escalating interest rates and equity prices. The downside could also be limited because of lingering affairs over North Korea and a likely military response from the US.
This article about 30 November Gold Technical Analysis was written by Stuart Cowell, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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