Spot gold price trending points
- Gold price is nearing to a fresh 10-month high, as investors are eyeing riskier asset on trade-talk optimism
- Retail traders still remain long, yet RSI warned that the precious spot gold could soon enter into an overbought territory, slowing momentum
Gold eyes fresh highs, as investors are taking their chances
After attempting twice this month to break below its initial support level at $1303.26 per ounce, the gold bulls had reaffirmed the investors, as traders are placing bigger bets on the precious metal. Today, the 18thof February, the spot gold gains 0.39 percent to 1326.23, its best level since May 10th, 2018. Gold price has been gaining for three straight days with analysts are predicting further gains, while the spot gold could test a fresh yearly high at $1365 per ounce.
A weaker dollar has a lot to do with spot gold price, as the investors’ risk appetite had shifted abruptly on fresh hope of trade talk. Meanwhile, the American dollar may fall further on gloomier economic outlook, which would likely to boost a spot gold greenback.
Since US president Donald Trump remained optimistic over a trade truce extension of 60 days and US sales data and job market remained gloomier amid no or one rate hike this year from Federal Reserve, globally, investors are placing heavy bets as market winds have transcended towards a gold bull.
While the weaker US dollar is helping spot gold, political risk still remains another talking point including the eurozone growth, Spanish election and Brexit. A tottered eurozone growth would support American dollar, dwindling the spot gold price as an aftermath.
Gold daily trading chart
Although market wind is shifted towards the precious metal and a weaker data from United States are weighing heavily on US currency, the spot gold is just a notch shy of entering into an overbought territory, which would likely to slow the current momentum.
At this moment, initial support level for gold lies at $1303.25 per ounce, and if broken it would likely to find support at $1297, and later on $1287 an ounce, yet that is highly unlikely to happen in a near term outlook.
On the flipside, a boosted investors’ optimism has driven the market forward, although a full throttle could not be achieved and gains are likely to be curbed by political tensions including a weaker eurozone, Brexit and a Spanish election ahead.
So far, global market is outstripping the political risks and gold appears to be a safe-haven currency, while traders are eyeing a fresh one year high to $1365 an ounce.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]