Wednesday, 7 December 2016

Gold Might Bounce Upon FOMC Meeting

US presidential election has been crucial for Gold, but a month later markets digested the event and now the focus is set on FOMC meeting next week. The rising expectations for rates hike might support the golden resilience and elevate prices as most traders will prefer profit-taking.
Gold prices so far remain weak and stuck within a narrow range. But technical indicators suggest upcoming bounce. RSI is around mid-line but showing positive divergence. Stochastic is showing overbought market but still is displaying strong bullish momentum. 
Short-term resistance is located at 1180 (50-day EMA) and higher at 1199 (23.6% Fibonacci retracement). Looking to the downside nearest support is seen at 1160 and 1134.
In the near-term Gold remains weak, but in the long-term technicals confirm rising upside momentum.
 


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