How Has The Needle Moved On Gold?

  • Oct 31, 2018 AEDT
  • Team Kalkine
How Has The Needle Moved On Gold?

Geopolitical concerns and growing demand during festive seasons in certain part of the globe (including India) are expected to take Gold through highly volatile sessions. Banks and brokerage houses have reduced their estimates for the gold prices for the year and 2019. The commodity has touched the 19-month lows in the month of August, touching the lower levels of $1159.96. However, the technical chart showed some pull backs with buy signals coming into picture around October 09. This was noted with the formation of a ‘Doji’ candle while uncertainty in the markets prevailed. Emanating geopolitical concerns majorly supported the move in gold price. Immediately on October 10, 2018, a clear signal of bulls weighing over sellers was seen as the formation of a small bull candle on the price charts with positive crossover on MACD indicator was noted. Further, October 23, 2018 marked the Gold recording high levels of $1239.90 and October 26, 2018 witnessed gold recording a high of $ 1243.43 with slight rejections on the upside and sellers taking lead over buyers also noted. As at October 30, 2018, Gold was seen to be trading at the levels of $1224.14. Recent updates indicated the Spot gold to be around US $1222.98 an ounce. 

On intraday charts the commodity is trading at the lower end of the bollinger and forming small bullish candle along with RSI showing some positive divergence. The pullback can be indication of fresh sell.

Levels of $ 1239.59 - $1240.54 now seem to play a small resistance zone at the back of the formation of triple top on the charts; while major support levels are expected around $1226.37 - $1223.53. Levels of $1217- $1215 can play key support zones for trend reversal. At current juncture, with the price level around $1223, slight weakness is indicated as the commodity is trading within its support zone.

Gold has seen sharp fall from the month of March after touching the higher levels of $1366.07 in the month of January and  touching the lows at the levels of $1159.96. Further, it has shown slight pull backs  on account of major fall seen on global stock markets from the Month of September and touching the higher levels of $1243.3 on October 26. The recent fall in global markets landed support to the commodity as investors shifted to the Commodity in the highly volatile environment prevailing globally across all markets.

However, gold at current prices is still trading at lower side and many market experts expect some more upside is left with the growing economic and political tensions. As per the poll conducted by Reuters among 30 analysts, Spot gold price can touch the levels of $ 1268-$1273 an ounce in 2018 and $1300 in 2019.

Given the whole scenario, gold prices become a key to watch.


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