Gold Rally Pushes Higher
The rally in gold prices is accelerating this week as the yellow metal continues to be the asset of choice for investors looking to ride out the current market uncertainty. The futures market has broken out to fresh highs this week with gold currently up around 3.5% from the weekly open and around 12% off the month’s lows, helped by the continued slide in the US Dollar. The move in gold is being driven by ongoing uncertainty around the US trade war. Trump’s unpredictable policy adjustments and shifts in sentiment mean that traders have lost confidence in the US Dollar and are instead turning to gold as their preferred safe-haven.
Retail Sales & Powell Speaking
Looking ahead today, traders will be watching the latest US retail sales data alongside comments from Fed chair Powell who is due to speak later on. If retail sales are seen rising as expected last month, this could help stem the declines in USD midweek. However, given the bullish forecasts ( core 0.4% vs 0.3%, headline 1.3% vs 0.2%) there is plenty of room for a downside surprise which should put further pressure on USD, if seen, while driving gold prices higher. Following the data, focus will then turn to Powell’s speech with USD vulnerable to a fresh push lower in response to any dovish comments from Powell, again likely to see golds prices higher consequently.
Technical Views
Gold
The rally has advanced to around the 3,300 level today where price is stalling for now. However, while above the 3,164.82 level and with momentum studies bullish, focus is on a continuation higher. Below there, 3,039.97 and the bull channel lows wil be the next support to watch.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.