Golden Bulls Yet Among The Market

The US dollar’s strengthening, the expected interest rates hike and the lower risk and volatility in stock markets are most important factors that are driving gold prices down. The exposed Trump’s program for boosting the GDP definitely will lead to rising interest rates and stronger US dollar, which is attracting for investors. Hence this is bullish for the dollar, gold is going to suffer. 

But in case we are having long term interest rates increase, this does not always mean that we will have falling prices in gold. According to the World Gold Council the average gold returns were positive as long as interest rates increased gradually and didn’t reach extremely high levels - over 4%. Some economists have shared the opinion that during Trump’s presidency a recession will be a fact, because the current expansion on stock markets is taking too long time. In this common, the investors in gold mining companies should consider this and take steps for profit taking, but instead of this the observation is that they keep their investments for a longer term. 

And while we are witnessing the brutal post election sell-off, shall we abandon all things gold?

In fact the post elections fever dumped the gold hedges  and the gold suffered huge drop for the last 3 weeks. Obsessed by the fear of the unexpected, traders generated enormous sell offs and couldn’t think deeper over the market situation. If looking inside the gold stocks’ fundamentals there might be found an amazing way to fight the prevailing fear. 

The gold miners just released their third-quarter results, which proved very impressive. I suggest you to look at the below GDX Component Comapnies’ Fundamentals Q3’2016 table.  Lower costs and higher gold prices usually lead to surging operating cash flows and profits and the gold miners’ fundamentals are stronger now. So golden bulls are still among the market.

Gold at 3-week high

Amid the overall economic instability gold shines with its safe haven status. The disappointing NFP data set the US dollar under pressure and this naturally influenced the growth of the yellow metal. 

Gold finished the week elevated after reaching a 3-week high. The test of the resistance at 1305 seemed to be inevitable, but  the market always reserves the right to surprise us.

Futures for gold climbed higher today to trade at $1,277.30 per troy ounce, as earlier marked intraday high at 1280.80, which is the highest level since 18 May.

As long as the key support located at $1,255 retains, gold bulls are steady.Currently gold hovers around $1,277 and eventual close above this level will target bulls to the resistance at $1,285.

Gold above $ 1200 handle

During the past two weeks gold suffered from the rising expectations that Fed could soon increase interest rates and the stronger US dollar. Yesterday the closing price settled to three and a half month low at $ 1207 and is on track to mark the largest monthly decline since November 2015. Yesterdays also was hit the lowest level since February 17 at $ 1199.60.

Today gold is slightly relieved because of the Asian markets fluctuation. In the morning the yellow metal conquered the psychological $ 1200 handle and reached $1214.60.

Bulls might be flashed in case of breaking above $ 1218 level, where is located the major resistance, which is acting as 100-day EMA. Looking downwards key support is seen at $ 1190 (55-day EMA).

Gold, pressure, adrenalina

Since the beginning of the year we witnessed a brilliant golden performance. Up ahead in the distance a shimmering light embraced first quarter and shined through the amazing 15.8% increase.

Last December gold was knocked down, reaching $1050, but quickly recovered and pinned new highs at $1282 in February and $1305 in April.

From technical viewpoint the February rally significantly pushed the price up and set bears calm, as they have been at large for the last two and a half years.

But the fundamental aspect caught traders in a landslide, facing a silhouette of bewilderment, as US economy strongly blows the wind of change. Fed’s rate hike definitely sube la adrenalina.

The sense of a suspense shivered and shadowed. So now gold walks the empty street on the boulevard of broken dreams. The restless stream is now caught up within the sound of silence.

Currently gold prices are under huge selling pressure during the last six sessions.  

The strong support located at the 55-day EMA was conquered and gold split the doubts that for shortly could move up, even hit intraday high at $1234.30. In elevated perspective, the resistance is planted in $1250.00 level and a vision of softly creeping breakout could lead the price towards $1265.00. A step back is very likely to support-turned-resistance at $1243.00.The short term rally could bring some small profits, but gold will loudly break the sound of silence in the long term run.

Gold futures fell sharply

Gold futures fell sharply today amid increased interest in riskier assets after Japanese stocks jumped by 7% this morning.

The April contracts of yellow metal dropped by 2.3 % or $28.20 to $ 1211.10 per ounce, after last week recorded its biggest jump from December 2011 onwards as added 7.10 % to its value, which today caused extended  sales.

Gold was shining with a fourth weekly gain amid the crushing global equities, the collapse of  crude prices and the weaker dollar. The fate of the global economy has revived the safe-haven status of gold after years of being treated like the underdog on financial markets.

Last week gold deliveries for April raised with 7.03% and on Friday ended at $1,239.10 an ounce on New York's Comex. Last week they were seen at $1,1157.70 an ounce.