Thursday, 12 October 2017

GOLD At two-week high


Yesterday’s FOMC minutes supported the gold prices on the back up of the notable USD weakness. The rate hike was postponed for December and the dovish tone of the central bankers reflected on sliding US treasury bonds yields, which supported the precious metal.  
XAU/USD is seen close to the very significant 1300.00 handle today and had marked daily high at 1297.50. On the four hour time frame the prices is moving well above its bullish 20-day SMA, while indicators are giving mixed signs. Stochastic is retreating from its extreme overbought territory, but yet remains above 80. RSI is located above its mid-line and is has lost directional strength.  Ahead of US PPI data and the weekly jobless claims gold prices are vulnerable to retreat lower in case of having better than expected numbers.  
First support is seen at 1290.00 and in case of breaking, door are opened for testing 1280.00. Looking to the upside, first resistance come at 32.8% Fibo of latest July to September bullish run around 1300.00 mark. If bulls succeed to conquer it, next target will be the 1310 – 1320 area.


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