Spot gold opened with gap-higher on Monday and returned above $1500 level, as rising tensions in the Middle East following latest attack on Saudi oil facilities prompted investors into safe-haven assets.

The yellow metal benefited from worsening geopolitical situation, however, focus is on Fed policy decision , due later this week, which is expected to be the main driver of gold’s price.

The US central bank is expected to lower interest rates, with main question in the markets on percentage of the reduction.

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Calmer tones from US/China trade talks and can also add to negative pressure on metal’s price.

Gold price pulled back from new six-year high at $1557 (4 Sep), with initial signs of basing at $1485 zone, but a number of key events and mixed techs warn that correction is not over yet.

Daily studies maintain strong bearish momentum and broken 20DMA (currently at $1515) continuing to cap recovery attempts and keeping the downside vulnerable. Also, Friday’s marginal close below pivotal Fibo support at $1490 (38.2% of $1381/$15557 upleg) adds to negative signal, but repeated weekly close below $1490 is needed to generate bearish signal and spark fresh extension of pullback from $1557 towards $1470 (55DMA) and more significant $1464 support (top of rising thick daily cloud).

On the other side, lift above 20DMA and converged, parallel-running daily Kijun-sen / Tenkan-sen ($1518/20) is needed to sideline downside risk.

Res: 1512, 1515, 1518, 1520
Sup: 1498, 1490, 1485, 1479

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