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Forex

Gold price takes a breather at $1496 as the momentum drops

Squared Direct | Aug. 12, 2019
Gold price takes a breather at $1496 as the momentum drops

Gold price was relatively unmoved and is trading at 1496. This is slightly lower than last week’s high of 1510. In recent months, XAUUSD pair has moved to an all-time high following the Fed’s decision to lower interest rates.

12 August 2019 | SQUARED DIRECT The price of gold has traveled between a low of $1494.96 to a high of $1509.40 on Friday, ending Wall Street around 0.50% in the red as the precious metal struggled to maintain the bullish momentum despite the DXY falling 0.20% on the day.

Initially, gold price found a bid on the White House's decision to hold off on granting licenses for US companies to purchase some Huawei equipment following Beijing's halting of US crop purchases. However, risk aversion spiked on reports to the contrary and that the US won’t ease Huawei restrictions. Nevertheless, these two headlines are another reminder of the recently deteriorating outlook for US-Sino trade negotiations.

Gold price technical forecast

Gold price took a breather during Friday’s session after failing to print new highs as the momentum drops. The price is still holding around the $1500 level but however, the clear divergence between the price and the momentum my trigger a correction as a double top formation also emerges. We will be focusing on the downside for now, especially on the 1482.82 support level.

Support: 1456.93 / 1441.79
Resistance: 1474.99 / 1482.82

Chart (4H)

Gold price

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