Market News & Analysis

Short-term decline building for Gold?

May 9, 2019 | CFD News

Overnight Gold hit new 3-week highs touching 1291.47 before sellers faded the move setting up a failed high. Price ended the session closing $3.60 lower. Last night’s high lined up with the trendline creating a new lower high and re-held the current short-term resistance seen at 1285/86 levels. Overall price continues to respect the current downtrend. Below the double bottom, support point has formed a wider descending triangle.

We’re looking for sellers to maintain the current short term momentum and possibly set up a new decline that could test 1277. This will be invalid if buyers can regroup and move price back above 1284.50. That would start to cast doubt over lasts nights fade and starts to suggest sellers are weaker than what appears. 

Newswise Gold could be influenced by upcoming USD sensitive data on the bull or bear side depending on what’s released. Tonight at 10:30 pm Fed Chair Jerome Powell speaks. U.S PPI and Core PPI data will also be released. Tomorrow highly important U.S CPI and Core CPI data will be released at 10:30 pm. The U.S-China trade negotiations, this is another highly sensitive factor to keep an eye on as it’s already influenced Gold during this trading week. Better news has been bearish or late and bad news has been more positive. President Trump has advised new tariffs are set to be introduced this Friday. 

Gold Daily Chart

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All times are in AEST. 

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