Gold prices testing the $1300 level - 9 February 2018
The US Dollar gains stopped, hence, the gold got a chance to achieve more gains, as it moved from $1307 to $1322 an ounce in this morning trading, and at the time of writing it is established at $1317, awaiting further stimulates to achieve stronger gains and avoid more bearish pressures. After the announcement of the Chinese inflation numbers, the gold will react to the industrial numbers from the UK, while there are no significant US data at the end of the week trading, therefore, the gold might watch the dollar’s level based on the investors’ sentiment along with the US markets’ performance.
The renewed strength of the US dollar halted the gold’s advance, as the US dollar index DXY reached 90.40 after it was below 89.00 before the announcement of the strong US jobs data which was a strong support to the US dollar in achieving these gains. The gold’s gains stopped with the strong bounce of the US stocks market during yesterday trading session after the heavy losses during Monday’s trading. The gold’s daily chart, we can see a new break of the uptrend which will be stronger of the gold moved towards $1300. Last Friday’s results showed a stronger than expected rise in the US job’s numbers, with 200k new jobs, and an increase in the average hourly wages to its highest level in 8 years, while the unemployment rate remained around its lowest levels in 17 years, which is supporting the Federal Reserve’s plans to raise the interest rates this year.
Technically: Gold prices will break the uptrend today and start its stronger bearish trip if the price moved towards support levels at 1300, 1290 and 1282. But, if the price is stable above the resistance level at 1300, as it is now, the uptrend chance will remain and will be stronger again in case it reached towards peaks at 1340 and 1325.
On the economic data front: The gold will focus completely on the dollar’s level and the investor’s risk appetite, as the gold is one of the most important safe heavens. The gold will be monitoring the renewed geopolitical fears regarding North Korea, BREXIT or Tramp’s economic plan.
- Currency Pairs