Fundamental Forecast for Gold:Bullish
GOLD TALKING POINTS:
Gold prices are lower for a sixth consecutive week with the precious metal plummeting nearly 2.6% to trade at 1179 ahead of the New York close on Friday. Despite the magnitude of the decline, prices are poised to close well off the weekly lows with our focus next week on a key technical support barrier.
GOLD AT CRITICAL LEVELS AS USD STRUGGLES / BROADER RISK ASSETS STUTTER
It was a volatile week for broader equity markets as rising concerns regarding deteriorating economic conditions in Turkey and the ongoing US / China tariff skirmish weighed on investor sentiment. At the same time, underlying strength in the US Dollar (which has kept pressure on gold) has started to ease with the DXY struggling ahead of slope resistance highlighted earlier this week. Will these mounting geo-political concerns and a waning greenback finally offer some support for the battered yellow metal?
For gold, the price ‘washout’ into fresh yearly lows (a 14% drop from the April highs) warrants attention as we head into next week’s annual Central Banking Symposium in Jackson Hole Wyoming. Despite the decline in price, gold has managed to hold just above a key pivot in price and the focus remains on a reaction off the recent lows registered this week
SPOT GOLD IG TRADER SENTIMENT
