Gold inter-markets: Buy the pullbacks, 200-DMA on sight

Gold prices on Comex kicked-off a new week on a bullish note. Now extending its winning streak into third day, as uncertainty over Trump’s policies and Friday’s mixed US labour market report poured cold water over a summer Fed rate hike, which boosted the non-interest bearing gold at the expense of the US treasury yields.

The CME Fed Watch Tool, which reflects the probability of FOMC rate moves for upcoming meetings, showed that the chances of a no rate hike at the FOMC meeting in March stands at 86.7%, slightly higher from Friday’s 82.3%.

Now looking at the intrinsics, gold shows a strong correlation to the USD/JPY price action and treasury yields, both of which suggest further upside in-stored for the yellow metal.

While in terms of technicals, gold displays a potential cup and handle formation that will be confirmed only if the prices close above $ 1219 on a daily basis. Gold prices are poised to test the 200-DMA resistance located at $ 1265 should the cup and handle bullish break out is confirmed.

To conclude, any pullback in gold towards $ 1200 levels (confluence of 100-DMA and key psychological level) can be seen as a good buying opportunity, with gold seen as an ultimate store of value amid rising political tensions, in light of Trump’s presidency and the UK’s Article 50 trigger.

You may be interested

Buy Bitcoins in Europe With Bitmoney.eu
bitmoney.eu
shares357 views
bitmoney.eu
shares357 views

Buy Bitcoins in Europe With Bitmoney.eu

Brian Evans - Aug 10, 2017

Want to purchase bitcoins? Look no further! Buying bitcoins has never been easier, with Bitmoney.eu. Bitmoney.eu makes the process of buying Bitcoin easy and efficient, saving customers…

Goldman Sachs: ‘Real Dollars Are at Work’ in Cryptocurrency Markets
Bitcoin
shares453 views1
Bitcoin
shares453 views1

Goldman Sachs: ‘Real Dollars Are at Work’ in Cryptocurrency Markets

Brian Evans - Aug 10, 2017

Goldman Sachs has published a question-and-answer report focused on cryptocurrencies in which it suggests that clients should be keeping a closer eye on the market. According to…

Bitcoin’s Present Bubble Might Actually be the Beginning of Mainstream Adoption
Bitcoin
shares458 views
Bitcoin
shares458 views

Bitcoin’s Present Bubble Might Actually be the Beginning of Mainstream Adoption

Brian Evans - Aug 09, 2017

Bitcoin’s enthusiasts are torn between whether to celebrate Bitcoin’s arrival in the foothills of mass adoption, or to lament the upcoming burst that always happens with asset…

Most from this category

%d bloggers like this: