THE PRICE OF GOLD

THE PRICE OF GOLD

The profits of the dollar stopped and, as a consequence, the gold had the opportunity to register more gains, since it went from 1307 to 1322 dollars an ounce during this morning and in this writing it was established in the 1317, waiting for new stimuli to achieve profits stronger and avoid further bearish pressures. After the announcement of the Chinese inflation data, the gold will react to the industrial numbers of the United Kingdom, while there is no important US data before the end of the week, therefore, the price of gold could monitor the level of the dollar based in the sentiment of investors along with the performance of the US markets.

The renewed strength of the dollar stopped the advance of gold, as the DXY dollar index reached 90.40 after being below 89.00 before strong US employment data, which offered strong support for the dollar to achieve these gains. Gold gains came to a halt with the strong recovery of the US stock market during yesterday’s session after heavy losses during Monday’s trading. On the daily chart of gold, we can see a new break in the bull trend that will be stronger if gold moves towards $ 1,300. Last Friday’s results showed a stronger than expected increase in US jobs, with 200,000 new jobs and an increase in average hourly wages to its highest level in 8 years, while the unemployment rate remained around from its lowest levels in 17 years, all of which is supporting the Federal Reserve’s plans to raise interest rates this year.

Technically, gold prices will break the bullish trend today and start their bearish journey stronger if the price moves to support levels at 1300, 1290 and 1282 dollars. But, if the price is stable above the 1300 resistance level, as it is now, the uptrend will be maintained and will be stronger again if it reaches the peaks at 1340 and 1325 dollars.

On the economic data front, gold will be completely focused on the level of the dollar and the risk appetite of the investor, since gold is one of the most important safe haven. Gold will monitor renewed geopolitical fears about North Korea, the Brexit or Trump’s economic plan.

Grafico del Oro