Tuesday, November 6, 2018

GOLD - 06 November 2018


Fundamental Highlights

Gold prices continue to trade sideways in the wake of the US jobs report and ahead of the US mid-term elections. Today's volatility could be crucial for the US Dollar after gaining traction with higher yields. With the Democrats attempting to take charge of the House, we can see Gold breaking to the upside as the mid-term election seems to be a referendum on President Trump.

Technical Analysis

Gold prices entered into a consolidation phase after reaching the $1237 level last week and then retreated towards the $1231 level. The price is currently hovering around the 1230 level with a relatively strong momentum which may send the price back above the $1237 level before entering into an overbought state. The next level we will be focusing on is the $1244 level, keeping in mind that volatility could pick up anytime.

Support: 1230.74 / 1228.26
Resistance: 1237.79 / 1244.78

Chart (H4)