GOLD WEEKLY ANALYSIS – GOLD GLITTERING ATTRACTION

Closed watch onto the yellow metal market has shown a remaining bullish momentum where, from a broader look on the weekly charts is possible to spot the breakout from the falling wedge, as mentioned in last week’s report. After the breakout, the expected pullback also happened right after on Monday trading session.

Technically speaking, the price action still seesawing in a secure consolidation area within 1,400 and 1,500 levels. Price action is finding dynamic support (in the daily chart) on the slopping-up 50EMA. MACD signaling a bullish momentum with a confirmation from Stochastic that we are not on and overbought zone yet, which could give some additional force to the precious metal price to break the 1,521 handles and finally move toward next resistance around 1,530 level reached last September.

The expectation on the FED’s cut-rate was responsible for the downward pressure and correction within this week, where gains were driven after the long-expected announcement and further fall on the greenback, where additional weak economic data, trade uncertainties, new doubts on the trade deal between the US and China phase one have given to needed support to the yellow metal.

Global market outlook has helped the gold to recover its glitter attraction, investors have been diving into the safe-haven market and will continue to do so if the downshift in the global economy continues. All these factors could bring the gold price to reach levels from six years ago, reaching not only 1,600 level but even 1,700, a level was last seen in 2012.

If news headlines fade on their political tone, gold should be in everyone’s portfolio as an investment. Re-evaluation over the weekend to come clear-minded and ride the exciting trading week ahead.

May the market be with you.