Chart of The Day Gold
Gold Probable Price Path & Potential Reversal Zone
US equity markets could not keep up the rally in earlier part of the trading hours. The S&P fell by 0.4% at the end as fiscal stimulus talks continued to stall. Tech shares did outperform, however, keeping the Nasdaq in the green and closing 0.5% higher. Pharmaceutical tickers climbed as vaccine rollout began apace, with New York state administering its first shots, for instance. Treasuries barely budged, and 10yr yield still hovered around 0.90% level. US dollar fell against most of its G10 peers, with Sterling continuing to enjoy the Brexit optimism. Gold pulled back by 0.6% to below $1829/oz level.
Joe Biden has moved closer to formally becoming the US President, with the Electoral College – meeting separately in 50 states and the District of Columbia – formally affirming him as the President-elect. This came despite continued attempts by outgoing President Trump to dispute the November election results. The next major step in the process will come on January 6th, when outgoing Vice-President Mike Pence presiding over a joint session of Congress in which the total Electoral College votes will be counted as an outcome declared, to pave the way for official inauguration on January 20th
From a technical and trading perspective, Gold appears to have completed a corrective cycle from the August peak at 2075, the complex correction terminated at the 1765/45 target zone discussed in our weekly live market analysis sessions over prior weeks. The initial impulsive advance from this area and the subsequent pullback to the ideal 1820 corrective target looks constructive confirmation will come ona breach of the internal descending trendline through 1855, this should warrant long exposure initially targeting the equality objective and descending trendline resistance at 1929, as corrections from this area are contained by 1875/55 then bulls can look for additional upside targeting 1960/80
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!