Gold hits one-month high on market uncertainty
James Chen September 25, 2015 2:55 AM
<p>Gold hit a one-month intraday high on Thursday as equity markets continued volatile trading in the face of global growth concerns and ahead of Fed […]</p>
Gold hit a one-month intraday high on Thursday as equity markets continued volatile trading in the face of global growth concerns and ahead of Fed Chair Janet Yellen’s speech after the US market close.
Major global stock markets initially dropped sharply early on Thursday before paring much of those losses later in the trading day. Despite this partial rebound for stocks, gold continued to remain strong as many investors flocked to the precious metal as a safe haven.
The price of gold reached an intraday high of 1156.46 on Thursday, just slightly edging above the 1156.37 high on August 25th, before falling back slightly later in the day.
With equity markets continuing to be pressured by uncertainties surrounding global growth, gold could further benefit as it continues to attempt a recovery from the summer’s multi-year lows.
While the longer-term 200-day moving average is still pointing to the downside, the shorter-term 50-day moving average has recently begun to turn back to the upside after having consistently sloped down for the past four months.
Thursday saw a clean breakout above the key 1140 prior resistance level. With further momentum on the current rally, gold could reach up towards the next major resistance target at the important 1170 level, which was tested back in late August. That key resistance objective is also where the 200-day moving average is currently situated. A further upside target on any continued flight to gold resides at the 1200 psychological level, which was last reached in June. Short-term downside support on any pullback continues to reside around the 1100 level.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.