Gold Halts Downside Movement As Bulls Gain Momentum

FXOpen

Gold finally showed a moderate pullback near the $1232 support area, apparently leaving a potential bullish pin bar on the daily chart that would be considered a major sign for the bullish reversal although the bias has already been turned to bearish due to Lower Low in the recent correction wave.

Technical Analysis

As of this writing, the precious metal is being traded around $1235. A support may be seen near $1232, the intraday low of today ahead of $1200, the psychological number and then $1180 which is a monster support in short to medium term.

gold fxopen

On the upside, the yellow metal is expected to face a hurdle near $1258 an ounce, the 23.6% fib level ahead of $1275, the 38.2% fib level and then $1285, the 200 Daily Simple Moving Average (DSMA) as shown in the above chart. The bias will remain bearish as far as the $1344 resistance area is intact.

US Monthly Budget Statement

The trade deficit of the United States remained $-129billion in August as compared to $-95billion in the month before, exceeding the median projection of $-130billion. Generally speaking, higher trade deficit readings are considered negative for the US economy thus a better than expected actual outcome spurred renewed selling pressure in the price of gold.

US Retail Sales

The Census Bureau of the US will release the retail sales report on Friday (today) in the New York session. According to the median projection of different economists, the retail sales remained 0.6% in August as compared to 0.0% in the month before. Generally speaking, higher retail sales figures are seen as positive for the US economy thus a better than anticipated actual reading will be seen as bearish for gold and vice versa.

Conclusion

Considering the overall technical and fundamental outlook, buying the precious around the current levels appears to be a good strategy if we see a bullish pin bar or bullish engulfing candle on the daily chart today.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

EUR/USD Analysis: Key Support Zone Resists Selling Pressure USD/JPY Analysis: Rate Reaches Maximum of the Year Market Analysis: EUR/USD, GBP/USD, and USD/JPY Market Analysis: AUD/USD and NZD/USD Could Start Fresh Increase Market Analysis: American Currency Rises Sharply after Fed Meeting

Latest articles

Weekly Market Wrap With Gary Thomson: UK STOCK MARKET RISES, S&P 500 FALLS, OIL ANALYSIS, EUR/GBP

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. UK stock market rises

Forex Analysis

EUR/USD Analysis: Key Support Zone Resists Selling Pressure

Today, fresh monthly values of the PMI index, which is considered a leading indicator of the state of the economy, have become known: France: actual 43.6, expected 46.2. This is the worst economic contraction since the coronavirus.Germany:

Forex Analysis

USD/JPY Analysis: Rate Reaches Maximum of the Year

This morning, the Bank of Japan's decision on the interest rate, which has been kept at -0.1% since 2016, became known. The rate size remained unchanged. Although surprises could occur due to the fact that inflation is still above

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% 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.