Wednesday, January 30, 2019

GOLD - 30 January 2019

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Fundamental Highlights

The yellow metal rose to the highest levels since May 2018, as the renewed doubts over the US-China trade resolution amid charges against China’s Huawei further boosted the safe-haven bids for gold. On top of that, gold prices continue to derive support from the expectations of a dovish FOMC monetary statement, as markets worry that the Fed will pause its policy normalization sooner than expected.

Technical Analysis

As expected, Gold prices continued the upward movement to reach the $1312.38 level and went further to print the highest price for an ounce of gold since May 2018 at $1313.99. The RSI shows extreme overbought conditions so a technical correction is more likely to happen at this level. We will be focusing on near support levels before we expect another rally in prices and this time towards the $1316.78 level.

Support: 1303.07/ 1296.99
Resistance: 1307.09 / 1312.11

Chart (H4)
XAUUSD