Monday, August 5, 2019

GOLD - 05 August 2019

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Fundamental Highlights

Gold was subject to the end of the week and Nonfarm Payrolls induced profit taking with prices in the yellow metals falling around 0.30% into the close on Wall Street. The yellow metal gave back some ground on Friday, but that is too be expected given the sheer amount of ground its covered since the trade tariff scare that sent prices around $45 higher on the day in the prior session. Gold can still attract a bid on risk-off concerns and taking a look around as trade wars intensify. Indeed, the signs of an intensifying trade war forced US yields and the greenback sharply lower as trader's called the Fed's bluff. Notwithstanding the Fed's messaging, expectations that rates are headed towards zero in the USA grew, with the market pricing in 50bp of rate cuts in 2019.

Technical Analysis

Gold prices took a breather as expected during Friday’s session and continue to do so this morning as the 1434.19 level is providing the right support for the bulls. The price is currently just above it with the momentum still in the bulls territory. We will be expecting another leg to the upside then we will focus on the potential break above the upper band of the flag represented on the chart

Support: 1410.78 / 1401.62
Resistance: 1435.81 / 1441.79

Chart (H4)
XAUUSD