gold plummet nears multi year lows 1744952015
<p>In the aftermath of this past Friday’s US jobs data that came out much better than expected at 271,000 added jobs versus a prior consensus […]</p>
Share this:
In the aftermath of this past Friday’s US jobs data that came out much better than expected at 271,000 added jobs versus a prior consensus forecast of 181,000, gold predictably extended its precipitous tumble of the past three weeks.
The precious metal’s recent losing streak has been sharp and virtually unrelenting as market anticipation over a potential December rate hike in the U.S. has grown as a result of somewhat hawkish Fed comments and relatively buoyant economic data. Friday’s substantially positive US non-farm payrolls report further supported the case for a rate hike next month.
During the course of the past three weeks, the price of gold has broken down below several key support factors, including: its 200-day moving average, its 50-day moving average, the $1140 support area, an uptrend channel extending back to this past summer’s lows around $1080 and, most recently, the key $1100 psychological support level.
Even after breaking down below all of these major support factors, gold’s stance and outlook continue to remain moderately bearish as we move towards the Fed’s crucial meeting next month.
Currently trading not far above the five-year low of $1077 that was just set this past July, price is nearing a critical support juncture. A generally rising US dollar and the specter of rising US interest rates should continue to weigh on the precious metal, at least until the December Fed meeting.
If this pressure results in a breakdown below the $1080 support level and this past July’s noted $1077 low, the price of gold could potentially follow-through with a further drop towards the $1050 target objective. This level is also around the 161.8% Fibonacci extension of the last bullish run within the noted uptrend channel.
Related tags:
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.