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FXTM: Ability To Hold $1,340 Key Near-Term Chart Factor For Gold

Kitco News

A close above $1,340 an ounce on Friday could mean technical-chart strength that carries gold to the $1,355 area, says Lukman Otunuga, research analyst at FXTM. As of 7:54 a.m. EDT, spot metal was $13.15 higher at $1,341.75 an ounce. “Gold bulls were back in action on Friday, with prices venturing towards $1,340 thanks to a vulnerable dollar and a sell-off in global equity markets,” Otunuga says. “It has certainly been an incredible trading week for the yellow metal, as heighted fears of a global trade war accelerated the flight to safety. With risk aversion in the air and the dollar under pressure, gold has the potential to appreciate further. From a technical standpoint, gold could challenge $1,355 if bulls are able to secure a weekly close above the $1,340 level. Alternatively, a failure for bulls to secure control above $1,340 could encourage a decline back towards $1,330.”

By Allen Sykora of Kitco News;


MKS: Soft Dollar, Trade-War Fears Trigger More Gold Gains

Friday March 23, 2018 07:58

Worries about a trade war triggered another rally in gold during overseas trading Friday after the metal already made a leg higher earlier this week when the Federal Open Market Committee did not signal any more 2018 rate hikes than after past meetings. Spot gold has traded to a one-month high of $1,343.20 an ounce. As of 7:54 a.m. EDT, gold was $13.15 higher at $1,341.75. A softer U.S. dollar played a role in the most recent strength, says Sam Laughlin, senior trader with MKS (Switzerland) S.A. “Trade headlines out of China in response to the U.S. tariffs saw a heightened flight to safety, leading into the Shanghai open, pushing gold through the post FOMC-high print; however, Chinese selling on the Shanghai open restricted any further tests toward $1,340 for the time being,” Laughlin says. “It wasn't until we saw European names filter in that gold found the support required to break above $1,340, with focus now turning to key top-side resistance levels at $1,350 and broadly the recent high prints around $1,361 (mid-February) and $1,366 (late-January).”

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