We saw the dollar gaining back some of its strength despite a weak NFP. This is the second week in a row that the gold prices have made a run to the upside but fallen back below 1260 and into the region and this kind of price action should be a matter of concern for the bulls. The gold prices continue to trade near the highs but this is more due to the increased risks and fears of the war in Syria getting escalated. This has led the funds to pull out money from the risky assets like the stocks and push them into gold but even when this is happening, we find that the gold prices have found it difficult to break the range highs so far.LInk


Our price is currently sitting at the top of the range on the daily chart and we can see that the bulls tried to push the price higher and broke the top of the range but the bears pushed it back down. and we also see our market EMAs showing a bullish momentum although the price still struggles to break through the top of the range.

Source: 10-4-2017


The markets are pretty flat on this chart and the price has failed to break above 1260 before Friday the 7th and also failing to break below 1240 for 3weeks running now. Unless the gold prices break through the highs of the range and manage to stay above it, the buyers would be exposed to the risk of these prices correcting lower and once this starts to happen, we could see more and more buyers abandoning the ship which could push the gold prices towards 1200

Source: 10-4-2017


One can apply the range trading strategy (buy at the bottom of the range and sell at the top of the range) on this pair currently and with that the stochastic can come in handy.

Source: 10-4-2017

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