Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Darius Anucauskas

A Bit More Downside For Gold?

Gold is at a very tricky spot right now. On one hand, from around the beginning of September, the precious metal continues to move lower, trading below a short-term tentative downside resistance line taken from the high of September 4th. On the other hand, this current slide could still be seen as part of a larger correction lower. The reason is that the commodity remains in an overall uptrend, after bottoming in December 2015. That said, from the shorter-term perspective, as long as the price stays below the aforementioned downside line, we will remain somewhat bearish.

If the price climbs a bit higher, it may end up testing the 1480 barrier, which previously acted as a strong area of support on October 16th, 22nd and 30th. If gold struggles to overcome that area, the bears might re-enter the field and drive the yellow metal towards the 1459 hurdle, or even the 1446 zone, which is the current low of this week. Slightly below that lies another potential support level, at 1430, which marks the low of August 2nd and coincides with the 200-day EMA. That area might stall the price temporarily.

Looking at our oscillators on our daily chart, the RSI and the MACD, both seem to support the idea of a small move higher before another round of selling. The RSI is currently pointing slightly higher, but remains below 50. The MACD, despite running flat right now, is still below its trigger and zero lines. 

For us to start considering the upside, ideally, we would like to see a break of the aforementioned upside line and a daily close above the 1518 barrier, which is marked near the highs of October 3rd, 9th and 25th. This way, more buyers could see it as a good opportunity to join in and push gold higher. This is when we will target the 1536 obstacle, a break of which may set the stage for a test of the 1557 level, marked by the highest point of September.

Gold daily


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd.