Gold: Inside day and holding nearby a daily resistance
Appears as if tensions between Saudi Arabia and Western nations, plus potential divisions in Europe over Italy’s budget and Brexit, are helping gold prices rise. However, some market analysts believed the recent gains in gold could also be credited to investors closing bearish positions after speculators had loaded up record short positions.
Since the beginning of October, the precious metal gained more than 2.5% and is in a recovery phase since early October.
On yesterday session, gold initially rose with a narrow range but found enough selling pressure to trim all of its gains and closed near the low of the day, however, the precious metal managed to close within Monday’s range, which suggests being slightly on the bearish side of neutral.
The stochastic is showing an overbought market and is beginning to display a shy bearish momentum.
After the sharp upward move on October the 11th, the precious metal turned sideways, in a tight consolidation ranging between Fibonacci level from 1,234.64 down to 1,217.04. This sideways movement may be attributed to the FOMC Minutes to be released later today.
Gold Daily Candlestick Chart
Written by Hugo O’Neill, External Analyst
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