Tuesday, August 7, 2018

Gold - 085 August 2018


Fundamental Highlights

Gold took advantage of the greenback weakness during the first half of the day and rose to $1216 before losing its traction in the North American session yesterday. The Dollar regained power after the economic optimism index exceeded forecasts. On the other hand, stock indices also gained value which makes it difficult for traditional safe-havens to find demand.

Technical Analysis

The price continues to respect the purple trend line represented on the chart but still no lower lows for the yellow metal. We will keep watching closely the $1209 support level and then the break above the trend line. A break with a candle close above the $1214 resistance level will confirm a reversal in the trend and a correction towards the $1217 and then $1222 resistance levels.

Support: 1205.73 1197.75
Resistance: 1214.15 1217

Chart (1H)