Article by: ETO Markets
The price of yellow metal is moving cautiously since US Treasury bond yields have stopped falling. Nonetheless, a stable US dollar seems to provide some support for the price of gold. The weekly Jobless Claims report from the US may provide gold traders with some new trading incentives. The gold price may continue to be sustained in the face of growing expectations that monetary policy will loosen globally in 2019.
The 4-hour chart shows that the price of gold is continuing to rise despite under persistent selling pressure close to the 50-SMA at $... If the 20-SMA's projected trajectory is realized, it will confirm a bear cross by passing through the 50-SMA from above. The ascending 100-SMA at $… provides immediate support; a decline below this level will put the $… barrier in jeopardy. On further losses, gold sellers will aim for the 200-SMA around $...
As an alternative, purchasers of gold must establish a firm position close to the $… area, where the 20- and 50- SMAs congregate. A strong break above the latter will test the psychological barrier of $… and the threshold of $...
