As we reported in Wednesday’s technical report, gold would benefit on the back of a dovish minutes report from the US Federal Reserve whose members are split on any further rate hikes in the nearest future.
That pretty much means the nail in the coffin for any further rate hikes this year from the Fed.
Gold was also helped in today’s trading session by a terrorist attack in Barcelona as well as reports that congressman from the Republican party are deserting US President Donald Trump which means he won’t have the numbers to push through any economic policies.
"In a week where we started by worrying about nuclear war, markets have quickly moved on from this, with yesterday's weak session more of a response to fears that Mr Trump's strategy for the economy and business is falling apart and later the terrible terrorist attack in Barcelona," Jim Reid, a strategist at Deutsche Bank, told clients in a note.
On a technical level, it’s all looking good for gold and after finding solid support on Wednesday at the $1,270 mark, it has now broken through the psychological $1,293 mark which was the most recent top.
Gold has now made a higher double top, which should become the next support level. We believe gold will test this support level at around $1,293 before continuing its uptrend and breaking through $1,300
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|