Monthly Gold price
Comex gold price currently charging up at 1260$, Its trading highest point of the day. Market opened higher today and sustaining well on higher levels. Last month we lost almost 50$ in 20 trading sessions. June started at 1300$ and ended near 1250$ making it worst month of this year. In june we tested 1248$ and closed almost at lowest price of the year that time. It was in july xauusd tested 1237$ and updated yearly low.
June selling was led by USD index which gained tremendously and removed the label of save haven from gold. Dollar tested 95 which was its major hurdle but it could not sustain above 95, sending relief to buyers. In 2018 gold weakness is direct connected to dollar strength. Despite global tensions and almost a trade war between US and China dollar is in good shape and contributing towards precious metals weakness.
ECB was another culprit towards metals weakness when it surprisingly announced they will end quantitative buying by end of the year and they might not increase interest rate till mid 2019. Another blow to gold came when ECB chairman announced it could hold low interest rate even after 2019. Euro crushed badly after both of announcements and USD Index gained pretty well, which directly contributed in gold weakness.
For now market has absorbed every single reason of precious metals rise, Be it trade war between US and China or concern about European economy. But it wont be long market finally realize its better to bet on metals than dollar index.
A good resistance on gold price chart stands at 1305$, This is monthly chart resistance, Do not confuse yourself with weekly levels. If traders break and close above our this resistance. Then expect good recovery upto 1300$- 1331$ this month in xauusd price.
A good support on gold price chart stands at 1237$, this major support we discussed in our last week’s post as well. This major base is also mentioned in our weekly analysis as well. So if this base is out and traders manage to close below our support. Then expect more weakness upto 1208$- 1170$ in upcoming weeks.
Conclusion: Gold trend finally seems stable and trading in positive territory. We would suggest a buy in dips and we would recommend a buy to our paid subscribers in some days.
As always, Trade with strict stop loss.
Happy Trading, Regards
Mohammad Arafat