Gold Remains Bullish up Towards $1,250 Again

Author: Riyan Setyawan, participant of the Analyst Contest

The yellow metal jumped on the back of rising uncertainty on the markets as demand for safe havens increased.

The contract for future delivery of the bullion traded 0.42% higher at $1,235.20 for a troy ounce on Monday.

The drop in oil prices dragged down the prices of stocks and commodity currencies, sparking a rally on safe-haven assets such as the yen, euro and gold, with the yen gaining more than 0.6%.

The increase in the price of the precious metal was partially caused by a fall in the greenback, as the dollar index slightly dropped 0.32% to 94.809.

The biggest event of the week will be the meeting of the Federal Open Market Committee (FOMC), the policy-deciding body of the Federal Reserve, which will discuss a further increase in interest rates.

Although no rate-hike is expected, the statement issued by the FOMC will show how the Fed wants to proceed over the rest of the year, with two rate-hikes to go according to the FOMC plans.

Gold is set to advance further as the Federal Reserve is expected to remain dovish at its two-day meeting beginning on Tuesday this week.

The upside potential for gold is strongly favored, as the US dollar is set to weaken in the short term.

 

At the H4 chart Gold Stochastic increases while moving Decrease volume illustrates the trend has changed. For the next movement if Gold in the near future could again break 1250 resistance level there is a tendency bullish Gold could widen again with the estimated price to test 1264.40 area.

Buy for the price remains above 1237.85.

Resistance: 1250.15, 1260.30, 1278.60.

Support: 1236.15, 1224.50, 1211.25.

Source:: Gold Remains Bullish up Towards $1,250 Again

About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

Related Posts

Leave a Reply

*