On Wednesday, commodities are relatively stable with Oil still trading near recent highs and Gold climbing in the risk-averse environment. The market sentiment has been shifted from Risk-on to Risk-off after the threat of further tariffs on the European Union from the United States.

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Besides, Europe struggling on several fronts and while the IMF is downgrading its European growth forecasts from 1.6% to 1.3% for the year 2019. Therefore, the funds are moving into the safe haven assets like gold and silver.



 

On the technical front, gold has violated the ascending triangle pattern which was providing solid resistance at 1,300. Gold is still consolidating above the same resistance come support area. The series of 20, 25, 30 EMA is suggesting a bullish bias of traders.

R3: 1320.75
R2: 1311.64
R1: 1307.9
Key Trading Level: 1302.53
S1: 1298.79
S2: 1293.42
S3: 1284.31

Consider staying bullish above 1,300 to target 1,311 and 1,318 today. Be careful with CPI and FOMC later today as this may drive new trends in the market.

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