Monday, November 12, 2018

GOLD - 12 November 2018


Fundamental Highlights

Gold fell sharply last week as the Fed reaffirmed policy tightening stance. A major chunk of that drop happened on Friday, the day after they set the stage to a 25 basis points rate hike in December. On top of that, US producer price index data for October showed an increase 0.6% versus an expected 0.2% increase to increase pressure on the yellow metal and continue boosting the momentum of the greenback.

Technical Analysis

Gold prices continue to free fall breaking several support levels including the major $1214 level. The price is currently hovering just above the $1204.07 support level with very extreme oversold conditions . We expect the downward move to continue and test the support levels in this area. We will be focusing on the $1198.13 level.

Support: 1220.12 / 1214.40
Resistance: 1224.22 / 1228.26

Chart (H4)