CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Gold Holds Above 1900 Whats next move

Article By: ,  Financial Analyst
August 13, 2020 1:01 AM

Gold Holds Above $1,900 After Tuesday's selloff, What's next move?

Following Tuesday's selloff, Spot gold rebounded from an intraday low at $1,863 before closing higher at $1,915. In fact, the weakening of U.S. dollars helped the rebound of gold. The ICE U.S. Dollar Index retreated 0.3% on day to 93.42. 

Besides, the vitality of gold jumped to 21.5%, the highest level since April. Investors should expect choppy trading in coming weeks. Currently, the investors would weigh on the dollars, bond yield and the risk appetite for the movement of gold.

Gold (Short Term): Key Resistance level at $2,015


Source: GAIN Capital, TradingView

On a daily chart, the candlestick pattern showed a Long Ranging Doji, a potential reversal pattern, after sinking to $1,863.

In fact, the technical rebound cannot be ruled out, if gold prices break above yesterday's high at $1,950. 

However, unless the resistance level at $2,015 (the day low of the bearish Engulfing bar) is violated, gold prices should remain in the phase of consolidation. The support levels would be located $1,863 and $1.770.

On the other hand, a break above $2,015 would turn the technical outlook to positive and bring a re-visit of next resistance level at $2,075.



Gold (Intraday): Rebound Expected


Source: GAIN Capital, TradingView

On a 1 hour chart, gold posted another rebound from $1,906 and returned the level above the 20-period moving average. Besides, the 20-period moving average is turning upward.

The relative strength index also breaks above the declining trend line drawn from August 5.

Readers could set the support level at the previous low at $1,906, while resistance levels would be located at $1,970 (50% fibonacci retracement) and $1,995 (61.8% Fibonacci retracement). Investors should focus on the resistance level at $1,995 as it is the level of ABC corrective wave as well. After that, the next resistance level would be located at $2,015.

In an alternative scenario, a break below $1,906 would trigger a return to the support level at $1,863.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024