Gold back away from highs but is there still more to come

Commodity Analysis Spot Gold XAUUSD

Time Frame : One Hour Chart

Spot Gold XAUUSD

Gold managed to push higher through 1438 as expected, even though it was not exactly to plan, and has since seen the price fall back down to 1413 support. In the short term we are now watching for a reaction off the 1413 zone and a move up. This may coincide with another run lower in the USD as Trump has mentioned he would like to see the dollar devalued. This may be enough for the sellers to keep the pressure on and see Gold rally. Whether or not Gold has then has the legs to run up and through 1438 highs is what we will be watching. One thing to notice is that ASX Goldies are generally very stretched and may see some profit taking in the near term so we may have to wait further action for opportunities. If the USD rallies, then the run higher on Gold may be over for now.

Commodity : Spot Gold

Current Price : 1416

Status : On watch for a potential break higher if USD has another run lower

Alert History

Previous Alert 16/07/19

Commodity Analysis Spot Gold XAUUSD

Time Frame : One Hour Chart

Spot Gold XAUUSD

Gold has been consolidating the highs between 1440 and 1383 as traders decide their next move. What Gold does next will be dependent on the USD as the turn down was the catalyst for the recent precious metal run higher as trader searched for yield. Further weakness into the USD was thrown a curve ball as recent economic data came out stronger than expected therefore cooling the expectations for ‘aggressive’ rate cuts in the US. The bulls have not given up yet as the USD may easily fall further as earnings season kicks off in the US. We are now watching for a break out to decide our next step into Gold…whether it be looking for setups into gold producers or a straight trade into the commodity.

Commodity : Spot Gold

Current Price : 1414

Status : On watch for a potential break higher if USD continues under pressure