GOLD TODAY: Prices edging higher to challenge resistance

Short Term: Medium Term: Long Term: Resistances: R1 1,233 20 DMA R2 1,249 50% Fibo Jul-Dec sell-off R3 1,263.90 Feb 27 high R4 1,290 DTL R5 1,308 Support: S1 1,239.80 Recent low S2 1,233 20 DMA S3 1,210 38.2% Fibo Dec Feb rally S4 1,195 Mar 10 low Stochastics:Bullish Legend: BB – Bollinger band DMA – daily moving average Fibo – Fibonacci retracement level H&S – head-and-shouder pattern HRL – horizontal resistance line R/SL – resistance/support line UTL – uptrend line Technical Comment Analysis Spot gold prices have rebounded strongly after the sharp retreat between February 27 and March 10. Prices have climbed back to $1,261.05 per oz – they dipped briefly before pushing higher again. Resistance is now seen at $1,261.05 per oz and at the February high at $1,263.90. The 20 DMA had rolled over to the downside but it has since started to trend higher again.  The stochastics are holding up in high ground. Although they had crossed lower, they are now crossed higher again. We still think gold prices are emerging into a bull market although so far prices have climbed only 12.5% above the December low; a 20% move is deemed necessary to qualify as a bull market. That would require a move to $1,347 per oz, which is still a long way away. Macro picture CFTC data on Friday March 31 showed strong buying in the week to March 28, with 8,120 extra long positions added while 13,448 shorts covered. This has taken the net long fund position to 137,820 contracts, up from a recent low of 106,038 contracts on March 14.   Political uncertainty in Europe and the USA alongside the potential for other markets to get disappointed about the reflation (or Trump) trade seem to be the driving factors supporting firm gold prices.  The fact gold prices are rising in tandem with the dollar is also a strong sign that there is safe-haven buying interest around. Conclusion We remain bullish for gold and expect safe-haven buying to remain strong ahead of the looming French presidential election. All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.

The post GOLD TODAY: Prices edging higher to challenge resistance appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2oZNfXg
via IFTTT