Back to the Forex Alerts day's list
Alert-15:39 (Est) ACM Precious Metals Analysis: Gold Breaks Support Level as Dollar Surges amid Fragile Sentiment
|
Gold tumbled as resurgence in dollar strength weighed on the precious metal, causing it to drop below key support level as the dollar advanced against majors amid tentative market sentiment. The dollar weakened in early trading as improved optimism heightened risk aversion in the market, buoyed by the Dollar Index touching its lowest level of 78.3 this year. Price action in gold received muted reactions from weakness in the dollar, but remained constructive as it hovered around the $957oz level. The precious metal broke out of the range-bound pattern as swift change in sentiment sent the dollar higher, dampening gold’s appeal as traders seek direction in the dollar. Worse-than-expected corporate earnings and consumer confidence (46 vs 49 forecasted) eroded risk appetite, spurred demand for the dollar. Gold fell below the $946oz support level and dipped lower as the Dollar Index pared early losses and climbed to as high as 79. Gold found support at the next technical level and wavered around $937oz as oversold levels in RSI dictated price action in gold.
Support: 929.79 Current: 938.48 Resistance: 951
|
|
ACM Advanced Currency Markets SA (hereinafter referred as ACM) is a professional financial intermediary, directly regulated by the Swiss Federal Department of Finance, Anti Money Laundering Control Authority. As forex specialist, ACM provides only currency and precious metals trading via highly professional forex trading software. All customers are aware that this information or any part thereof has been prepared without taking account of your objectives, financial situation and/or needs. This information is not intended as personalized investment advice and does not constitute a recommendation. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. The analysis is based on the information which ACM finds reliable and accurate, but ACM does not assume any responsibility for any material nor for the transactions made on the basis of the information or the estimates of the analysis. ACM cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct, indirect and/or consequential loss arising from any use of this information, document or its content. All opinions and estimates constitute ACM analysis as of the data and are subject to change without notice. ACM does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions. Past performance is not a reliable indicator of future performance.
|