Gold Price Climbs Higher

Gold prices edged higher on Thursday and moved within striking distance of two-week tops set in the previous session. What can traders expect next? GKFX shared their technical forecast.

November 22, GKFX – A combination of supporting factors helped the precious metal to regain positive traction on Wednesday and build on last week’s goodish rebound from one-month lows. 

Renewed US Dollar selling bias, further weighed down by disappointing US durable goods orders data, was seen as one of the key factors underpinning the dollar-denominated commodity.

Fundamental Highlights

Adding to this reports that the Fed might pause the rate hike cycle as early as spring 2019 provided an additional boost and lifted the non-yielding yellow metal to an intraday high level of $1230.

Meanwhile, bullish traders seemed rather unaffected by improving global risk-appetite, as depicted by a positive tone around equity markets, which tends to dampen the precious metal’s safe-haven demand. 

However, growing market conviction that the Fed will eventually hike rates in December might turn out to be the only factor keeping a lid on any follow-through/runaway rally for the commodity.

Market participants will be looking for any change in the Fed’s forward guidance for 2019 before determining the commodity’s near-term direction and placing any aggressive bets.

Gold Price Technical Forecast

Any subsequent up-move is likely to confront resistance near the $1233 level, above which the metal is likely to aim towards retesting a resistance marked by 3-1/2 month tops, around the $1243-44 region.

On the flip side, the $1225-24 region now seems to have emerged as an immediate support to defend, which if broken might accelerate the fall back towards weekly lows support near the $1218 level.


This article was provided by 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.

If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

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