Gold looks poised for new 2019 highs
Fawad Razaqzada July 18, 2019 4:46 PM
Gold, which had consolidated for the past few days, looks like it is about to break further higher, after it worked off its ‘overbought’ conditions through time.
Gold was coming off its lows after starting the day on the back foot, following yesterday’s sharp rally when silver caught our attention. Silver took off and it has since extended those gains. Gold, which had consolidated for the past few days, looks like it is about to break further higher, after it worked off its ‘overbought’ conditions through time. The underlying trend is bullish for both metals, due to the falling government bond yields and the recent struggles for the dollar and stocks. So, as things stand, these are good times for buck-denominated and noninterest-bearing precious metals. Indeed, gold’s RSI is no longer at “overbought” levels after price consolidated near the highs. With the metal breaking out of the consolidation, a push to new 2019 highs could be on the cards, potentially as early as later today. The bulls’ next target could be the underside of the rising trend capping the prior highs, which comes in around $1460, with the psychologically-important $1500 hurdle being the subsequent objective. The bears, meanwhile, will be waiting for a clear bearish pattern to emerge before stepping in. A daily close below $1400 could be such an outcome in the short-term. But there are now lots of old resistance levels on the way down which could potentially support prices on any short-term weakness.
Source: eSignal and City Index.
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.