Gold recovers on geopolitical concerns, good to sell on rallies
- Gold has shown a good pullback yesterday on geopolitical risks and rising crude oil prices. The yellow metal jumped almost $16 on concerns over Saudi Crown Prince crackdown on corruption and arrest of number of princes and ministers. It is currently trading around $1279.
- WTI crude oil prices hit almost two year high and is currently trading around $57.29. The tensions in Saudi and decline in US rigs count is boosting the price of oil.
- US Dollar index is consolidating in narrow range between 94.40 and 95.15 for the past ten days. The index is facing strong resistance at 95.20 (161.8% fibo) and any break above targets 96/96.51 level. It is currently trading around 94.78. The pair is facing major support near 94.40 (10- day MA) and any break below confirms minor weakness till 93.90 (100- day MA)/93.58 (55- day EMA)/92.60 likely.
- CFTC shows that speculator have cut their net long position for a 7th straight week over Oct 17-24.
- Technically gold is facing near term resistance around $1285 (55- day EMA) and any break above will take the pair to next level till $1290 (61.8% Fibo)/$1298. Overall bullish continuation can be seen if it closes above $1298 (50- day MA).
- Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal.
It is good to sell on rallies around $1278-$1280 with SL around $1286 for the TP of $1262/$1250.
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Source: FXWire Technicals
7. November 2017 12:52:16