Investor's safe-haven assets such as gold are expected to attract fresh capital, as the global economic scene looks upset in a consistent manner. The financial market in some economies soared up to all-time record highs as the hopes of a phase one trade deal between the US and China were into play. But, same hopes once again is under threat, countering previous developments, as the US signing a bill into law supporting pro-democracy hong kong protesters.
Slowing global and geopolitical tensions weighed down by trade decisions and recent tightening. Also, the German economy on focus with a threat of technical recession. Lower growth is likely to produce a more dovish Federal Reserve policies with rate cuts going into 2020.
Anticipations of a complete breakout above 61.8 Fibonacci retracement Fan Resistance Level and acceleration towards the upside trend in a 4hr chart.
Ichimoku Kinko Hyo
Prices are trading above the Kumo cloud until a 1 hr charting frame. Whereas the 4 hr chart suggests that the prices failed to penetrate the Kumo cloud on the Friday trading session as the US bank holiday was on schedule. Prices are under the cloud which explains bulls are still under pressure and finding fresh buyers from swing lows. Supports can be found at $1456/oz.
50 days simple moving average is widely accepted and used as a prominent financial instrument price forecasting technical tool by portfolio managers to set their trading strategies. whereas gold currently trading below 50 SMA taking the level as resistance.
Hedgers and Speculators (prices in USD /oz)
Entry : $1456
Take Profit: $1517
Stop Loss: $1436
Risk/Reward Ratio: 3:1
Take Profit: $1402
Stop Loss: $1441
Risk/Reward Ratio: 2:1