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Forex

Gold price hits fresh multi-year tops, around $1459

Squared Direct | Aug. 5, 2019
Gold price hits fresh multi-year tops, around $1459

Gold price edged higher through the early European session on Monday and climbed to fresh multi-year tops, around the $1459-60 region, in the last hour.

5 August 2019 | SQUARED DIRECT – Gold price was subject to the end of the week and Nonfarm Payrolls induced profit taking with prices in the yellow metals falling around 0.30% into the close on Wall Street. The yellow metal gave back some ground on Friday, but that is too be expected given the sheer amount of ground it's covered since the trade tariff scare that sent prices around $45 higher on the day in the prior session.

The price of gold can still attract a bid on risk-off concerns and taking a look around as trade wars intensify. Indeed, the signs of an intensifying trade war forced US yields and the greenback sharply lower as trader's called the Fed's bluff. Notwithstanding the Fed's messaging, expectations that rates are headed towards zero in the USA grew, with the market pricing in 50bp of rate cuts in 2019.

Gold price technical analysis

Gold prices took a breather as expected during Friday’s session and continue to do so this morning as the 1434.19 level is providing the right support for the bulls.

After a brief pause on Friday, the precious metal regained positive on the first day of a new trading week and built on last week's solid rebound from the $1400 neighbourhood - tested in reaction to a hawkish rate cut by the Fed.

With Monday’s strong upsurge, the commodity now seems to have confirmed a fresh bullish break above $1445-48 horizontal resistance and hence, a follow-through up-move, possibly towards reclaiming the key $1500 psychological mark, now looks a distinct possibility.

Support: 1410.78 / 1401.62
Resistance: 1435.81 / 1441.79

Chart (H4)

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