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ADS Securities

17 July 2017

Forex Technical analysis

Lower Fed rate hike expectations Gold price impact


ADS Securities' team of market analysts have shared their lower Fed rate hike expectations Gold price impact analysis. What is your Gold outlook?

17 July, ADS Securities – The precious metal rebounded in Friday’s session and ended at $1227.50, following a high at $1232.70, after a lacklustre US economic data dented demand for the US Dollar and reduced odds of a third interest rate hike.

Lower Fed rate hike expectations Gold price impact

As visible on the 1H chart, the short-term EMA has crossed the long term EMA from below, hinting at likely upside momentum in the near term. However, the MACD indicator has crossed the signal line from above, suggesting a possible correction. Key near term resistance is positioned at the $1233 level, followed by the $1236 and crucial $1240 levels.

A clear break and stability above the latter might prompt further positivity in the yellow metal. On the flipside, key short-term support is placed at the $1225 level, followed by the $1223 where EMA 55 is trading and $1220 levels.

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