Thursday, December 6, 2018

GOLD - 06 December 2018


Fundamental Highlights

Gold prices took some profits off the table during yesterday's session and continue to do so this morning. The sell off began amid the thin trading volume yesterday in the NA session due to the national holiday in remembrance of President Georges Bush. Adding to this, the hostility between US President Trump and Chinese President Xi is more likely to weigh on stock prices and hence support the US Dollar and put more pressure on the yellow metal.

Technical Analysis

Gold prices are more likely set to continue the selloff after failing to print new highs and seem to be forming a double top pattern. The price is currently in a very critical area with the momentum retreating from overbought state. If the $1234 support level gets violated to the downside then we will be focusing on the $1228.26 support level.
Support: 1230.74 / 1228.26
Resistance: 1236 / 1237.8

Chart (H1)