Gold Drifts

Gold opens at 1256 in Asia, stuck in no-mans as extended long positioning caps rallies and geopolitics tensions support the downside. Overnight, gold sold off to 1247 initially only to be saved as lower U.S. yields saw the dollar weaken.

Key support still lies at the 1240 region with the 200-day moving average above lying at 1258 this morning.  Rallies above 1260 could be hard to sustain, as gold lacks momentum from a technical perspective. We still believe that a break of 1240 will could signal a deeper correction.

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Currency Analyst
Based in Singapore, Jeffrey has over 25 years experience in the financial markets, having traded currencies, options, precious metals and futures. Jeffrey started his career at Barclays Bank in New Zealand. However he has spent most of it in London and Asia.Jeffrey focuses on the Asia time zone across asset classes. A regular commentator on business news TV and Radio, he is originally from New Zealand and holds an MBA from Cass Business School, London.
Jeffrey Halley

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