Thursday, 12 January 2017

Gold At Six Week High

Following the US President elect press conference the gold prices are showing further up-move and crossed the psychological handle at $1200. Gold is currently trading at $1205, the highest level since November 23rd and a six week high. 
Donald Trump didn’t offer much on his speech and more important is that he didn’t share any details on his on-coming economic plans to increase growth. Amid the planted disappointment among the markets, the US dollar suffered and was exposed to broad sell-off. The weakened US dollar boosted the interest for the gold investments.
If closing above $1193 (38.2% Fibonacci retracement of latest 1304-1122 decline), gold prices are poised to extend the upward march towards the 50% Fibonacci retracement at $1215. On the downside weakness is seen around the support line at $1165 (23.6% of same Fibonacci retracement) and a daily close below it, bears will target $1150 area.


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