Date: 17 Oct 2018
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
*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at its own risk.