· Gold edged lower on Tuesday as strong equities provided a risk-conducive backdrop for investors, countering support from Washington’s move to end waivers on Iranian oil sanctions.
Spot gold fell 0.1 percent to $1,273.18 per ounce as of 0750 GMT. U.S. gold futures shed 0.2 percent to $1,275 an ounce.
· “Gold is currently trying to find a short-term bottom around an ounce level, especially as equity markets continue to rally,” said Margaret Yang, an analyst with CMC Markets in Singapore.$1,274-1,275
Asian shares were edging towards a nine-month peak touched last week while stocks on Wall Street were near break-even on Monday as the benchmark S&P 500 index was about 1 percent away from the record high hit in September.
· Better-than-expected economic readings from both the United States and China have also assuaged investor concerns of a sharp global economic slowdown.
Markets now eye the release of the U.S. GDP data later in the week, which will provide clear indications about the strength of the world’s largest economy.
· However, heightened geopolitical tensions between the United States and Iran, with the former terminating all Iranian sanction waivers on Monday, pushed oil prices higher and also supported prices for the metal, Jeffrey Halley, a senior market analyst with OANDA, said. [O/R]
“But, this (oil price rise) is not enough to change the general sentiment surrounding gold. It just seems to be marking time, before other factors like a stronger dollar or equities exert downward pressure on the market,” Halley added.
The dollar index was also near a 2019 high of 97.71, struck in early March.
· “Gold looks vulnerable to a further extension lower through , opening a test toward the day moving average at ,” analysts at MKS PAMP Group said in a note.$1,270200-$1,251
· Gold continued its downtrend falling $in the week which again was a $$ranged one. The fresh decline raises the bar for further downside as technical support of a pattern gave way which was also retested it the week itself allowing it to become an immediate resistance for the price going ahead. Fundamental news keep coming out and last week saw the re-surface of much talked ‘impeachment’ of American President which can again sway the prices. The bearish trend is getting stronger on every passing week given the price movement.15 20-22
· GOLD PRICES DIP WHILE LOWER LEVELS STILL IN SIGHT
In last week’s webinar, we highlighted how gold may see a sharp mover lower that likely persists below $1250. Well, gold prices did dip to $1270, then paused heading into the holiday weekend. The higher probability gold forecast is for gold to continue lower below $1250.
Though not expected, if gold prices do run higher above $1325 before dropping below $1250, then we will need to reassess the forecast and reconsider if the multi-year Elliott wave triangle that began July 2016 may have finished and found a low.
· Elsewhere, silver fell percent to per ounce. Platinum was steady at per ounce having hit a two-week high of in the previous session.0.2$14.95$894.41$911.75
Palladium was 0.8 percent lower at $1,374.91 per ounce, having shed as much as 3.5 percent to $1,373 in the previous session.
Reference: Reuters, Trading View, Daily FX
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