technical analysis for gold today – Poised to Challenge Five-Week High at $1491.60

technical analysis for gold today –  Poised to Challenge Five-Week High at $1491.60

technical analysis for gold today –  Poised to Challenge Five-Week High at $1491.60

 
technical analysis for gold today posted a solid gain on Monday on extremely low trading volume before the vacation season, with lingering concerns about the health of major global economies driving demand for the valuable metal

“Investors are watching political risks within the longer term… There are potential economic risks still within the majority of economies. That’s not getting to get away during a hurry,” said INTL FCStone analyst Rhona O’Connell

technical analysis for gold today The us and China have still not signed a so-called Phase One trade deal and tensions within the Middle East are contributing to gold’s appeal,” she added. Gains may are capped by comments from President Trump on Saturday. Trump said the us and China would “very shortly” sign the trade agreement

Perhaps offering some support for gold prices was weaker than expected economic data. Core durables Orders came in at 0.0% versus 1.5%. durables Orders were -2.0% versus 0.2% and New Home Sales were 719K versus 730K

technical analysis for gold today The main trend is up consistent with the daily swing chart. A trade through $1491.60 will signal a resumption of the uptrend. the most trend will change to down on a move through $1463.00

The minor trend is additionally up. A trade through $1474.30 will change the minor trend to down. this may also shift momentum to the downside

The support is layered at $1477.30, $1472.30 and $1467.80

The main range is $1525.20 to $1453.10. Its 50% level at $1489.10 was tested on Monday

The next target is that the major 50% level at $1495.30. this is often also a possible trigger point for an acceleration to the upside with subsequent target a 50% level at $1512.40

Daily Swing Chart Technical Forecast

Based on Monday’s close at $1488.70, the direction of the February Comex gold market on Tuesday is probably going to be determined by trader reaction to the short-term 50% level at $1489.10

Bullish Scenario

technical analysis for gold today A sustained give way $1489.10 will indicate the presence of buyers. this is often followed closely by the minor top at $1491.60 and therefore the 50% level t $1495.30. Sellers could are available on the primary test of this level, however, overtaking it could trigger an acceleration into the main target zone at $1512.40 to $1526.40

Bearish Scenario

technical analysis for gold today A sustained move under $1489.10 will signal the presence of sellers. If this move creates enough downside momentum then search for a possible forced an entry the Fibonacci level at $1477.30, followed closely by the minor bottom at $1474.30