Gold technical review

FIBO_Group

Master Trader
Jun 20, 2016
535
3
64
www.fibogroup.com
The gold price in on track today to rack up its 5th straight day og gains and from a technical position we can see on the chart that in each of the previous 5 sesions, gold has nanaged to break through a previous, support or resistance level.

As long a there is no sell off later in the trading session today, it is hard to see why gold can’t movu towards the next resistance level which is around $1,307 although their might be some slight resistance at the phsychlogical level of $1,300.

Yesterday’s Fed minutes meeting was good for gold as there tone of voice pretty much garanteed a rate hike in December which takes away the uncertainty of will they or won’t they and we now believe that a rate hike is already priced into gold at around these levels.

The other main uncertainty now is weather North Korea is going to launch any more missiles over the coming days qwhich should also help to support gold.

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FIBO_Group

Master Trader
Jun 20, 2016
535
3
64
www.fibogroup.com
As we said yesterday, the possibility that gold would run into resistance at the $1,300 level has eventuated but the overall picture looks good so far in today’s trading as the price has remained above yesterdays close.

We think that it may take a couple of trading sessions to finally break back through the $1,300 mark with the next resistance level at $1,308.

There is the chance that traders may take some profits before the weekend comes although the possibility that investors would want to take a position in gold before the weekend is higher as over the last 2 month sit seems that major events that triggered a rise in the gold price were happening on weekends when markets were closed.

One such event may be the decision by the Prime Minister of Spain Mariano Rajoy who gave the Catalan leader Carles Puigdemont until 10am next Monday morning to clarify his situation on whether he has declared independence and if so, his government will be forcibly removed from office.

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