Hello Traders,
Gold’s bullish run after the US rate hike has been impressive. It has so far gained more than $110/ounce since the Feds first raised their interest rates first in December and then again in March this year. Even though there was a switch in dot plot and the cautious tone prevailed in the last FOMC meeting, Gold continued to chart its way higher towards the $1300/ounce benchmark. Gold is a safe haven metal and this is where investors rush and store their capital even though it doesn’t bear any interest. Of late, war rhetoric between the US and North Korea plus the French election uncertainties is fanning this safe haven status. Yesterday, the metal retraced and most interestingly, it closed above the upper BB meaning that its price was for a moment overvalued. All in all, the French election incoming polls shall in some ways steer its price. Let’s not also forget the positive correlation gold has with the Euro.
Technically, as you can see in the daily chart, price is overextended. Yesterday’s close was above the upper BB and with the 20 period and a 2.0 standard deviation, it means that the $1284.10 price was expensive and above the limits. This means that price will move towards the middle band for equilibrium to be achieved. Also, check out the stochastics, a clear sell signal has been formed.
I will trade as follows before the weekend:
Sell: 1284
Stop Loss: 1295-above yesterday’s highs
Take Profit: 1265-for a 1:2 risk reward ratio
Watch out for US building permits later in the NY open. General consensus is for an increment in the number of permits issued in March to an expected figure of 1.25M from February’s 1.216.
Have a good trading day.

Gold 4HR chart-18.04.2017

Source: Dalmas Ngetich

Gold Daily chart-18.04.2017

Source: Dalmas Ngetich

One thought on “GOLD DAILY ANALYSIS FOR 18.04.2017”

  1. Dalmas Ngetich - FOREX.TODAY says:

    if you had been patient, it means your targets were hit with Macron leading. nice 200 pips within 4 trading days. Reenter this trade at all highs. You can also enter now and put your stops at around $1280-85 per ounce range with a 1:3 risk reward ratio.

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