Gold outlook remained unchanged followed by depressing NFP report and falling U.S. equity prices
There were very little changes in the Gold price, as the US NFP report and equity prices dragging down the USD pace. The current market data is showing that this precious metal might have been in a narrow range, as there is no alteration in the monetary policy outlook.
Gold technical outlook
Gold remained unaltered by the recent development, as US equity prices are under pressure. However, the gold may continue to consolidate, unless there is a recent change in the monetary policy. Until then, recent environment may keep the gold in a narrow range. In accession, the higher US interest rates may keep the gold under pressure. The IG Client sentiment report is showing that about 83.7% trader’s position are net-long.
As gold have performed multiple failed attempts to reach $1225, since it has fallen into the 1200s for the first time in 2018. Still the gold outlook remains bearish and a downward move seems to be very likely to happen. Though, as the recent data shows, the gold may have been in a narrow range just below 1200.
Gold daily chart
As there is lack of momentum to propel the gold price forward, it is very likely that gold will fall below 1200. There is very little chance to push above $1219 in the recent future and the first are of interest is coming around $1172, if gold price falls below $1190 region. While this report was being written, the market was closed and gold ended the week at $1203.37 (05.10.2018).
A downward move below $1172 will open up the opportunity to fall below $1160, the 2018-low and it might be tough to handle below $1156 level (61% retracement). If there is alternation in the monetary policy, the gold might break above $1219, though it is very unlikely to happen, according to recent market data and trends.
Read more about access e-waste in Thailand here.
Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.