Gold price is currently back above the $1500 level and is now hovering around the $1506.02 support level as the momentum picks up again.
22 August 2019 | SQUARED DIRECT – The price of gold rebounded on Tuesday, after sliding for 2-consecutive trading days. Prices moved higher as riskier assets eased. US yields moved lower which weighed on the US dollar which paved the way for higher gold prices.
To help drift the US economy, President Trump said the White House is examining stimulus such as reducing capital-gains taxes while maintaining that growth remains strong. However, gold will continue to find a bid in a low rate environment and while geopolitics dominate the themes, although, what has been in the background are the macro fundamentals.
There is a focus on the Federal Reserve where some analysts are expecting them to pull the trigger again by adding a 25bps cut in September.
Gold price technical forecast
Gold prices climbed a touch during yesterday’s session, with prices rising 0.72% and traveling between a range of $1493.18 and $1508.70 per ounce.
The price is currently back above the $1500 level and is now hovering around the $1506.02 support level as the momentum picks up again. Prices seem to have a strong support above the 1500 level so we will be focusing on the upside, especially on the $1520.64 resistance level.
Support: 1506.02 / 1494.36
Resistance: 1520.64 / 1539.61
Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves a high level of risk. Therefore, Forex and CFDs may not be suitable for all investors because it is possible to lose all invested capital. Only invest with money you can afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved. Seek independent advice if necessary. Please refer to our Risk Disclaimer.