Gold is up by nearly 0.5% in trading today
Though nowhere near the highs seen yesterday, gold is holding firmer today after buyers leaned on support close to the 50.0 retracement level to possibly build back momentum to move towards the upside again.
Buyers are still in near-term control as price holds above the key hourly moving averages and that remains the key risk level for any potential upside move in the week ahead.
As such, pay attention to the 100-hour MA (red line) and 200-hour MA (blue line) in the sessions ahead. Those levels sit closer to $1,511-13 at the moment.
For any upside move, buyers will have to contest with the swing region around $1,535 in the near-term before looking towards the week’s high closer to $1,555. In the big picture:
Price is looking to navigate through swing region resistance around $1,535-62 on the week so perhaps we could see the upside move consolidate around these levels for now.
However, the outlook for gold remains solid amid global central banks looking to ease with the global economy also seen slowing down further – trade tensions will only add to that.
At this stage, any dips from a technical retracement/exhaustion will no doubt be met with buyers at key levels unless there is good reason for the macro landscape to change. As such, I don’t think talks of a move towards $1,600 is that far-fetched.