Gold bulls still have the advantage on their side
Gold bulls still see a very favourable Gold chart on a daily time frame. After the precious metal dropped below 1,500 USD over the last week of trading, Gold could stabilise above 1,480 USD.
One main reason for the sharper push back above 1,500 USD could be found on the news that a Chinese delegation has cancelled its farm visit to Montana with officials returning to China sooner than expected and resulting speculations that the trade talks between the US and China are about to fall apart with no deal being found again.
In addition to that, rising recession fears especially from Europe's biggest economy, Germany, after disappointing PMIs on Monday (Manufacturing PMIs e.g. saw their steepest contraction in factory activity since the global financial crisis in mid-2009, as output went down at the sharpest pace since July 2012 and new business declined at the quickest pace in more than a decade, amid lower foreign demand) and a resulting risk-off-mode into the start of the week stabilised the yellow metal back above 1,500 USD.
With that in mind, our outlook for Gold stays bullish with the short-term target on the upside being found around 1,555 USD and the mid-term target around 1,650/700 USD.
And even if we get to see a short-term stint and drop below 1,480 USD, we wouldn't consider such a move to be a big deal, instead see a potential mid-term long trigger around 1,440/450 USD.
Ready to take your trading to the next level? Find out how in Admiral Markets’ new webinar series Trading Spotlight, where our trading experts will be discussing risk management, trading psychology, and their top strategies for trading the world’s most popular markets - admiralmarkets.com/education/webinars/trading-spotlight-1
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
One main reason for the sharper push back above 1,500 USD could be found on the news that a Chinese delegation has cancelled its farm visit to Montana with officials returning to China sooner than expected and resulting speculations that the trade talks between the US and China are about to fall apart with no deal being found again.
In addition to that, rising recession fears especially from Europe's biggest economy, Germany, after disappointing PMIs on Monday (Manufacturing PMIs e.g. saw their steepest contraction in factory activity since the global financial crisis in mid-2009, as output went down at the sharpest pace since July 2012 and new business declined at the quickest pace in more than a decade, amid lower foreign demand) and a resulting risk-off-mode into the start of the week stabilised the yellow metal back above 1,500 USD.
With that in mind, our outlook for Gold stays bullish with the short-term target on the upside being found around 1,555 USD and the mid-term target around 1,650/700 USD.
And even if we get to see a short-term stint and drop below 1,480 USD, we wouldn't consider such a move to be a big deal, instead see a potential mid-term long trigger around 1,440/450 USD.
Ready to take your trading to the next level? Find out how in Admiral Markets’ new webinar series Trading Spotlight, where our trading experts will be discussing risk management, trading psychology, and their top strategies for trading the world’s most popular markets - admiralmarkets.com/education/webinars/trading-spotlight-1
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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