The GOLD record rally remains uninterrupted, where next?
Gold’s record rally remains uninterrupted so far this Thursday, as $4,250 appears within reach.
Safe-haven flows and a broadly weaker US Dollar keep pushing Gold northward.
Gold closed Wednesday above the upper boundary of a rising channel on the daily chart; RSI remains heavily overbought.
Gold maintains its record-setting advance early Thursday, after having settled Wednesday above the $4,200 threshold.
Amidst sustained USD weakness and persistent demand for safe havens, Gold – a traditional store of value – extends its record run into the fourth consecutive day on Thursday.
Gold buyers remain defiant as the ongoing trade spat between the US and China keeps investors on edge, while uncertainty over the US economic prospects in the face of the government shutdown also dent the sentiment around the Greenback.
US Trade Representative Jamieson Greer on Wednesday said that “China’s export restrictions were a “global supply-chain power grab” and the US and its allies would not accept the restrictions,” per Reuters.Meanwhile, a US Treasury official noted that the government shutdown could cost the economy $15 billion per week.
Furthermore, markets’ affirmation of two Fed interest rate cuts this year and concerns about the US labor market amongst the Fed officials bolster the non-yielding Gold at the expense of the buck.
Markets continue to price in roughly 95% probabilities of rate cuts at the Fed’s October and December monetary policy meetings, the CME Group’s FedWatch Tool shows.
Looking ahead, speeches from Fed policymakers remain of note in the absence of high-impact US economic releases.
Meanwhile, US-China trade developments and shutdown talks could be closely eyed for further trading incentives in Gold.
Daily technical analysis
The short-term technical outlook for Gold remains more or less the same, with the ‘hot run’ triggering timely bouts of profit-taking, justified by the 14-day RSI lurking within the extreme overbought zone, currently near 85.
Meanwhile, Gold settled on Wednesday above the upper boundary of the month-long rising channel, then at $4,184.However, it remains to be seen if the uptrend sustains, as the natural tendency of the rising channel formation is a break to the downside.
As buyers seem unstoppable for now, the $4,250 psychological level will be next on tap, above which doors will open toward $4,300.
Conversely, rejection at higher levels could trigger a pullback toward the channel support at $4,062.
Ahead of that, the previous day’s low of $4,140 could lend temporary support to buyers.
The GOLD record rally remains uninterrupted, where next?
Gold maintains its record-setting advance early Thursday, after having settled Wednesday above the $4,200 threshold.
Amidst sustained USD weakness and persistent demand for safe havens, Gold – a traditional store of value – extends its record run into the fourth consecutive day on Thursday.
Gold buyers remain defiant as the ongoing trade spat between the US and China keeps investors on edge, while uncertainty over the US economic prospects in the face of the government shutdown also dent the sentiment around the Greenback.
US Trade Representative Jamieson Greer on Wednesday said that “China’s export restrictions were a “global supply-chain power grab” and the US and its allies would not accept the restrictions,” per Reuters.Meanwhile, a US Treasury official noted that the government shutdown could cost the economy $15 billion per week.
Furthermore, markets’ affirmation of two Fed interest rate cuts this year and concerns about the US labor market amongst the Fed officials bolster the non-yielding Gold at the expense of the buck.
Markets continue to price in roughly 95% probabilities of rate cuts at the Fed’s October and December monetary policy meetings, the CME Group’s FedWatch Tool shows.
Looking ahead, speeches from Fed policymakers remain of note in the absence of high-impact US economic releases.
Meanwhile, US-China trade developments and shutdown talks could be closely eyed for further trading incentives in Gold.
Daily technical analysis
The short-term technical outlook for Gold remains more or less the same, with the ‘hot run’ triggering timely bouts of profit-taking, justified by the 14-day RSI lurking within the extreme overbought zone, currently near 85.
Meanwhile, Gold settled on Wednesday above the upper boundary of the month-long rising channel, then at $4,184.However, it remains to be seen if the uptrend sustains, as the natural tendency of the rising channel formation is a break to the downside.
As buyers seem unstoppable for now, the $4,250 psychological level will be next on tap, above which doors will open toward $4,300.
Conversely, rejection at higher levels could trigger a pullback toward the channel support at $4,062.
Ahead of that, the previous day’s low of $4,140 could lend temporary support to buyers.
Categories
Recent Posts
GOLD recovers on US-Iran ceasefire hopes, but a Bear Cross looms
GOLD risks pullbacks amid oversold conditions, Gulf war
GOLD crumbles as Gulf war escalates; is a turnaround coming?
LIKE THIS ARTICLE? SHARE IT!
Ready to trade?
Unleash your trading skills with your Maxain account today!
Easy funding & withdrawals
No deposit fees