By Giles Coghlan, Chief Currency Analyst at HYCM
Gold is at an interesting juncture at the moment from both a technical and fundamental perspective.
Fundamentally
A Low interest rate accommodative central bank policy has been supporting gold as investors seeking alpha have bought into the commodity. Furthermore, on top of this, the safe haven demand for Gold has driven prices higher as ETF’s gold holdings reached record levels and central banks bought record levels of gold this year. Gold is shining. What will keep that shine going? The same thing that has started it.
In order to keep rallying gold needs interest rates to keep falling and a failed or souring Us-China trade deal.
Technically
The key daily resistance level at 1473 marked on the chart has held, limiting further prices for now. The 100EMA is immediately below that level and a break and close below that level opens up $1440.
