Wednesday, November 13, 2019

GOLD

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Fundamental Highlights

The yellow metal recovered from a new 3-month low yesterday, and the biggest weekly drop in three years printing at $1445.82 before closing in the green at $1456.30. Risk on sentiment prevailed in early U.S trading session as the major U.S stock indexes registered new highs, and the greenback strengthened, pressuring down safe havens. This risk on sentiment was short lived as President Trump gave his speech at the Economic Club of New York, with the market expecting some concession and clarity on the trade deal, and was instead bombarded by more escalation and uncertainty, which fueled a pullback in gold prices. Heavy day today, with the American consumer in the spotlight and Fed Powell’s address to the joint economic committee of Congress.

Technical Analysis

Gold hit our target at $1448 in yesterday’s session, while unable to print an hourly close below the $1450 handle, an indication of a fading bearish momentum. The market is currently trading above the 20 and 50-periods SMA on the hourly chart with the RSI momentum indicator above 50 and heading north. A close above $1465.79 will favor a retest to 1471 and our resistance level at 1474.84, while a close below $1460 will restate bearish momentum.

Support: 1460.62 / 1445.83 / 1431.86
Resistance: 1474.84 / 1482.93 / 1493.49

Chart (H1)
GOLD