Wednesday, October 10, 2018

GOLD - 11 October 2018


Fundamental Highlights

Gold is gaining traction again as investors' confidence is vanishing. Major indices are in decline with the S&P witnessing the biggest single day loss since February and the DOW falling by more than 3% during yesterday's session. Rising global trade tensions are also giving back Gold its allure as a safe haven instrument as the U.S. Treasury Secretary Steven Mnuchin warned China about currency manipulation.

Technical Analysis

Gold prices gathered some momentum after hitting new lows to climb back above the $1190 level. As of now the yellow metal has added more than $10 of gains hovering just below the $1,199 level. The RSI is pointing towards a slight overbought condition, however the yellow metal has more room to climb and this time we will be watching closely the $1,200 level with a potential to break above it.

Support: 1180.6 1177.69
Resistance: 1184.86 1188.8

Chart (H1)