Gold sellers could hit it hard
Updated
Technical Overview
Weekly Pivot: $1197.67
Weekly Key Resistance: $1204.46 - $1208.66 - $1215.45 - $1223.43
Weekly Key Support: $1190.97 - $1186.68 - $1179.89 - $1170.09
Technical Indicator:
RSI: The RSI shows to more downside bias, moving below 50 level.
MACD: Macd having seller pressure with high volume.
Moving Avg: SMA55 ($1198.29 Blue Line in above Chart) & SMA200 ($1200.81 Black Line in above Chart) Strong Resistance for Gold.
Most Likely Scenario Long Position $1180 - $1184 with Strong Stop $1172 with target $1192.45 - $1198.35 in extension.
Fundamental:
Gold could start the week under pressure if reports from over the week-end are accurate. The Wall Street Journal reported Saturday, citing individuals familiar with the matter that President Trump is planning to impose a fresh round of tariffs targeting about $200 billion in Chinese goods.
According to the Journal, the tariffs are expected to be set at around 10%, according to people familiar with the matter, a lower level than the possibility of 25% tariffs previously floated by the administration.
With the move, Trump is trying to pressure Beijing ahead of planned high-level discussions and is intended to provide the U.S. leverage in talks over China’s alleged practice of demanding American companies turn over technology in order to do business in the country, the Journal reported.
However, traders could flock to the safety of the U.S. Dollar, putting pressure on gold prices, if the imposition of new tariffs escalates trade tensions between the U.S. and China.
There are no major U.S. economic reports this week but Treasury yields could continue to move anyway as investors position themselves ahead of the next Fed interest rate announcement on September 26. Last week, the benchmark 10-year Treasury note hit 3 percent, if it continues through this level, sellers could hit gold hard.
Minor reports include the Empire State Manufacturing Index, Building Permits, Housing Starts.
Thanks
YoCryptoManic
Weekly Pivot: $1197.67
Weekly Key Resistance: $1204.46 - $1208.66 - $1215.45 - $1223.43
Weekly Key Support: $1190.97 - $1186.68 - $1179.89 - $1170.09
Technical Indicator:
RSI: The RSI shows to more downside bias, moving below 50 level.
MACD: Macd having seller pressure with high volume.
Moving Avg: SMA55 ($1198.29 Blue Line in above Chart) & SMA200 ($1200.81 Black Line in above Chart) Strong Resistance for Gold.
Most Likely Scenario Long Position $1180 - $1184 with Strong Stop $1172 with target $1192.45 - $1198.35 in extension.
Fundamental:
Gold could start the week under pressure if reports from over the week-end are accurate. The Wall Street Journal reported Saturday, citing individuals familiar with the matter that President Trump is planning to impose a fresh round of tariffs targeting about $200 billion in Chinese goods.
According to the Journal, the tariffs are expected to be set at around 10%, according to people familiar with the matter, a lower level than the possibility of 25% tariffs previously floated by the administration.
With the move, Trump is trying to pressure Beijing ahead of planned high-level discussions and is intended to provide the U.S. leverage in talks over China’s alleged practice of demanding American companies turn over technology in order to do business in the country, the Journal reported.
However, traders could flock to the safety of the U.S. Dollar, putting pressure on gold prices, if the imposition of new tariffs escalates trade tensions between the U.S. and China.
There are no major U.S. economic reports this week but Treasury yields could continue to move anyway as investors position themselves ahead of the next Fed interest rate announcement on September 26. Last week, the benchmark 10-year Treasury note hit 3 percent, if it continues through this level, sellers could hit gold hard.
Minor reports include the Empire State Manufacturing Index, Building Permits, Housing Starts.
Thanks
YoCryptoManic
Trade active
European Session (17 Sep 2018) Trade:Pivot: 1197.50
Most Likely Scenario: short positions below 1197.50 with targets at 1189.85 & 1186.35 in extension.
Alternative scenario: above 1197.50 look for further upside with 1200.90 & 1204.75 as targets.
Trade active
US Session (17 Sep 2018) Technical TradeMost Likely Scenario: long positions above 1192.00 with targets at 1201.50 & 1204.50 in extension.
Alternative scenario: below 1192.00 look for further downside with 1189.25 & 1186.50 as targets.
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