Market Analysis: Gold bulls looking out for 1,300 USD as a potential long trigger

  • master
  • 16.02.2019
  • Comments Off on Market Analysis: Gold bulls looking out for 1,300 USD as a potential long trigger

Economic events calendar

Source: Economic Events February 15, 2019 – Admiral Markets’ Forex Calendar

The technical picture for Gold has gotten very interesting as we head into the week’s close.

In response to the FED announcing a more flexible policy in regards to the balance sheet runoff, Gold initiated a significant break above 1,300 USD/ounce. However, the current stabilisation in 10-year US Treasury note yields and the US dollar, allowed for Gold to correct back down in the region of its breakout two weeks ago.

With the overall picture for Gold remaining positive from a fundamental perspective, long engagements against 1,295/299 seem interesting particularly since the technical picture on a daily timeframe can be considered Long as Gold trades remain above 1,275/277 USD/ounce.

Despite the potential of a risk off hitting the markets, with no trade deal between the US and China on the immediate horizon, coupled with the previously mentioned flexibility of the FED in terms of the balance sheet runoff, a test of the 2017/2018 highs around 1,360 looks likely.

Gold daily chart performance

Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between November 27, 2017, to February 14, 2019). Accessed: February 14, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2014, the value of Gold fell by 1.7%, in 2015, it fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, meaning that after five years, it was up by 6.4%.

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