Gold Bulls are eyeing $1366

Since last Friday Gold prices turned the price movement direction towards north. During the last five session bulls gained strength and confidence and today are shrinking the distance to the remarkable January’s high at $1366.

As seen on the hour time frame currently the price is developing well above its moving averages and a little below the 3-week high at $1361. The 20-day SMA is keeping strong bullish course, while the 100-day and 200-day are staying flat and are acting as dynamic supports and coincide with the 50% ($1338) and 38.2% ($1330) Fibo levels of latest January to February brearish run.
On the same chart RSI and stochastic are located within extreme overbought territories, but both are losing directional strength. This signals some exhaustion and potential bearish reversal, so XAU/USD might enter into sideways consolidation ahead of $1366.

 

Gold on risk-on mode

The precious metal erased last week’s gains against the greenback losing 1% or more than $12 for the day. XAU/USD is currently trading around $1272.70, having marked daily low at $1267 (38.2% Fibonacci retarcement of latest $1251to $1292 upleg).

The US upbeat data today supported the greenback and the US Dollar Index is seen so higher, even reaching two weeks high at 94.01. So the safe heaven demand was set on risk-on mode. Technically speaking the four-hour time frame is showing bearish signs.
The price is moving well below its 20-day SMA, while the 100-day SMA is diving a good support coinciding with the 61.8% of same Fibonacci retarcement at $1267. 
RSI and stochastic had retreated from the oversold areas but yet are far below their mid-lines. And this comes to tell that bears might enjoy their  time until breaking the Fibo 38.2% at $1276 that would bring back bulls in the game. 

Gold posted new fresh low

While the US dollar is boosted today by stronger economic data along with the rising expectations of Fed’s rate hike, gold prices plummeted and hit a new fresh low.

XAU/USD pair was sliding downwards for sixth consecutive session and pressured mainly by the US dollar strength extended its fall to reach an intraday low at $ 1265. The pair crossed the 100-day moving average as well as the key support level at $ 1300. It is important to mark that gold prices have not visited significant lows since end of May 2016, when tumbled to $ 1198.

As seen on the daily chart, gold has formed five waves descending line and is currently riding the third one at $ 1351. The Stochastic is showing oversold market and RSI neared negative area. Expecting corrective movement towards $1300/1305 area. Resistance is now located at $ 1300 and $ 1318. Support is seen at $ 1268 and $ 1250.

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 rises slightly

Today gold is attempting to increase after reached yesterday more than five-year low during a temporary retreat of the dollar, which eased pressure on raw materials and make the gold more affordable for buyers using other currencies.

Yesterday representatives of the Federal Reserve continued to hint for a rates hike in December after seven years of near-zero levels. They expressed confidence that the markets will accept the changes smoothly, despite some concerns about a sharp reaction.

Gold spot price is $ 1077 per ounce compared with yesterday's drop to $ 1064.95, which is the lowest value since the beginning of 2010.
U.S. housing starts in October fell to a seven-month low assingle-family home construction in the South tumbled, but a surge in buildingpermits suggested the housing market remained on solid ground.

The dollar today retreated from seven month highs due to withdrawing gains.

Gold fell to 3-month low

Gold fell to a three-month low on Wednesday session, after failing to take advantage of a weaker dollar. The precious metal remains under pressure due to the expected increase in interest rates by the Federal Reserve.The spot price of gold fell 0.5% to $ 1084.61 per ounce. This is the lowest level since August 7th.

US futures for delivery in December fell by $ 3.60 to 1084.90.Pressure also remained on platinum, which fell for tenth consecutive session of decline and reached its lowest level since December 2008. It is trading at around $ 875 per ounce.Palladium registered a decline and fell by 3.5 % to $ 574.25.

Silver is also in the red area. The metal fell to 14.20 - the lowest price since late August.
"If there (is) a December rate hike, the next question is what's the path, is the Fed going for at least three further increases of 25 basis points but the end of 2016," Societe Generale analyst Robin Bhar said. "In that case,gold will definitely see a move down towards $1,050."

Gold remains close to three-week low

Gold fell for a second day and reached their lowest levels for the past three weeks. This followed after the Federal Reserve hinted about possible interest-rate hike in December.

As expected, at the meeting on Wednesday the US central bank decided to leave interest rates unchanged. According to the institution a possible increase in interest rates in December will depend on inflation and employment.

The weakness of the world economy and its impact on the United States give reason to believe that the Fed will delay increasing interest for the beginning of next year.

The published on Thursday data on US GDP show a slight slowdown. For the third quarter GDP increased by 1.5 %, as preliminary expectations were for growth of 1.6 %.

The spot price of gold fell 0.9 percent to 1,145.43 - its lowest level since October 9.

US futures for delivery in December fell 2.4% to $ 1147.30 per ounce.

Other precious metals also recorded declines on Thursday. 

Platinum fell 0.9 % to $ 989 per ounce.

Palladium fell 1.5 % to 667.50.

Silver depreciated by 2.1 % to $ 15.58 per ounce.