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
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