FX168 Financial News (Hong Kong) - Spot gold rose slightly on Monday (November 19), reaching a peak of $1223.60 per ounce in the US market, Gold price There are some signs of profit taking in short-term consolidation transactions, which are still stabilizing above the 1220 pass. The dollar continued to decline, with the dollar index hitting 96.22 as the lowest, continuing to operate below the 97 level. The US NAHB property market index for November released within the day was 60, lower than the previous value of 68 and the expected value of 67, recording the largest decline since February 2014.
In the peripheral market, the global stock market was relatively calm overnight. US stocks extended losses, led by technology stocks. Since this Thursday is Thanksgiving Day in the United States, the market will be closed early on Wednesday, and Friday is "Black Friday". Traders will stop trading and be keen to buy Christmas gifts. In terms of key peripheral markets, after hitting an 11 month low of $54.75/barrel last week, US Oil continued to decline after a short upward revision.
As of press release, the dollar index fell 0.21, or 0.22%, to 96.20. The Dow fell 224.87 points, or 0.88%, to 25188.99; The S&P 500 index fell 23.16 points, or 0.85%, to 2713.11; The Nasdaq Composite Index fell 119.20 points, or 1.64%, to 7128.67. US oil fell 0.34% to US $56.49 per barrel, while oil distribution fell 0.69% to US $66.30 per barrel.
There is no major news event in the market this week. It is reported that the CIA has alleged that the Crown Prince of Saudi Arabia is the person behind the order to murder the Saudi journalist Kashuji. However, in view of the fact that the United States and Saudi Arabia, the Middle East ally, have too many interest constraints, especially the United States has large arms sales orders to Saudi Arabia, the market has responded to this news calmly.
Hussein Sayed, chief market strategist of FXTM, said that before the emergence of a new catalyst, gold will continue to consolidate between $1200-1250. The new catalyst may be the progress in the Brexit negotiations or the G20 meeting between the United States and China. He said, "If we hear more moderate remarks about the tightening cycle, it will drag down the dollar and push the gold price trend again."
The concern of Fed policymakers about the possible slowdown of the global economy has raised doubts about how far the interest rate tightening cycle can go. The dollar continued to decline after recording its largest weekly decline in two months. So far this year, the Federal Reserve has raised interest rates three times, making the holding cost of interest free income gold higher. It is expected to raise interest rates four times next month.
"Alasdair Macleod, research director of GoldMoney.com, said," Since the United States will take a holiday on Thanksgiving Day on Thursday, it will be a very quiet week. Due to the contradictory signal that there may be a truce in the Sino US trade dispute, the world stock market rose. " The German analyst said that unless "we see more volatility in the stock markets of emerging markets and industrial countries, the gold prospect is not optimistic."
At present, from the technical point of view, although the gold price has returned to 1220 and the upward momentum has been strengthened, it remains to be seen whether the gold price can be stabilized above this level. Air still has comprehensive technical advantages in the near future. On the upside, 1225 is the spot resistance level, followed by 1230; In the downward direction, 1220 is the first support, followed by 1210 and 1200.
Future prospects
The organization fxleaders wrote a brief analysis as follows:
Gold fell slightly after hitting a high of 1225 on Friday. Gold bulls entered the market last week after Federal Reserve officials expressed concern about the global economic outlook.
In Asian market trading, we short below 1220 with the target of $1217.
Gold faces significant resistance near 1223. The gold price closed a bearish swallow pattern below 1223, which indicates that traders have a bearish tendency.
In terms of indicators, RSI is overbought, which means that the bulls are exhausted, and we may see the bears enter the market.
In terms of trading strategy, the gold price breaking through $1223 may lead to its further rise to 1236. If the gold price continues to be short below 1223, the target will be $1217 and $1213.
At 00:18 Beijing time, spot gold was reported at 1222.20 US dollars/ounce, up 0.9 US dollars, or 0.07%.
(Daily line chart of spot gold source: FX168 financial network)
