Weekly Gold Forecast - 29 May 2017

29 May 2017 7:08:34 AM

By: DailyForex.com

Gold prices settled at $1267.07 an ounce on Friday, scoring a gain of 0.8% on the week, as uncertainty about economic and political stability increased desire for safe-haven diversification. The latest data from the Commodity Futures Trading Commission (CFTC) revealed that speculative traders on the Chicago Mercantile Exchange increased their net-long positions in gold to 159767 contracts, from 126724 a week earlier. The minutes from the Federal Reserve’s latest meeting showed that an interest rate increase could be on the horizon. I think as long as May jobs figures don't disappoint, the U.S. central bank will tighten in June.

While investors continue to see a rate increase as highly likely next month, they no longer see a strong case for an additional hike in December. Technically, trading above the Ichimoku clouds (the daily and the 4-hourly charts) implies that the market is likely to continue to benefit from the (medium-term) bullish outlook. We also have positively aligned Tenkan-Sen (nine-period moving average, red line) and Kijun-Sen (twenty six-period moving average, green line) lines on both the weekly and the 4-hourly time frames.


If XAU/USD can stay above the 1265 level, prices will tend to go higher. In that case, the market should visit the 1277.35-1276 area. A daily close above 1277.35 means 1283/2 and 1288 will be the next targets. Beyond there, the 1295/2 zone stands out as a solid resistance. On the other hand, if prices drop through 1265, then the 1261/59 area may be tested. Breaking down below 1259 paves the way for 1254, which happens to the top of the 4-hourly cloud. The bears have to capture this camp so that they can force the market to test 1251/0 and 1245 (the bottom of the daily cloud).


Alp Kocak has been trading Forex since 2003. He writes technical analysis based on Japanese candlesticks and Ichimoku Kinko Hyo.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now