Wednesday, 19 June 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
'Gold Has Nothing To Stand On Right Now': Watch The $1,269 Price Level - Analysts
Wednesday, 22 May 2019 10:19 WIB | GOLD CORNER |Gold OutlookGold Corner

The U.S. dollar has been stealing gold's thunder again as it took on a role of a safe-haven, with analysts warning to keep a close eye on the $1,269 level, which if broken can be a gateway to even lower prices.

The yellow metal has been struggling this week as equities rebounded, the U.S. dollar climbed higher, and geopolitical tensions seemed to favor the dollar over gold. June Comex gold futures were last trading at $1,273.60, down 0.29% on the day.

"We've seen a pretty strong dollar index, a resurgence in risk appetite, and we've had a move higher in the U.S. yields," TD Securities head of global strategy Bart Melek told Kitco News on Tuesday. "It is not because anything is spectacularly great. There is a bit of safe-haven move into the U.S. dollar. Typically gold should benefit from that. However, at a time when you have equities recovering ¦ there isn't a big incentive for us to move into gold."

The U.S.-China trade tensions also seem to be benefiting the U.S. dollar, as financial markets view the American currency as a safe place to be.

"We still got the uncertainty coming from potential trade wars with China. Ordinarily, that should be supportive of gold as a risk hedge, but in this environment of a stronger dollar, the dollar seems to be the major beneficiary," said Mitsubishi analyst Jonathan Butler. "There is also a longer-term question of imports to the U.S. potentially decreasing and the balance of trade moving in the U.S.' favor as a result of fewer imports from China, [which] should speak to a stronger dollar."

Critical Levels To Watch

The $1,269 has become key in terms of future price action when it comes to gold as it represents a significant threshold that if breached, could lead to a major sell-off.

"Gold doesn't have anything to stand on right now," RJO Futures senior market strategist Phillip Streible told Kitco News. "Gold still looks like it is going to weaken. It touched the $1,269.60 level. We bounced off that level three times, so we are at a critical junction point where if we break through that level on a closing basis, we could start the next wave lower."

A move lower could be as significant as touching the $1,160 level, added Butler, while confirming that this kind of a scenario is an unlikely one.

"The level for me is the 200-day moving average, which right now is coming in around $1,258. We haven't seen gold trade below its 200-day moving average since late last year. But, we are coming closer to that level. If that were to breach, potentially you™ve got a trading range down to $1,200 or even back down to the lows of August last year at $1,160," he said.

Other critical levels to watch when it comes to gold are $1,263 and $1,258, noted Melek.

"There's very significant support near where we are. Short-term here, we have support around $1,263. And longer term, $1,258 is strong support. But, at this point, I don't see gold breaching the $1,264. Most likely, it will challenge most recent lows from early May around $1,266 or so," said Melek.

TD Securities viewed this week's downward move in gold as a temporary one, explaining that the U.S. economy is likely to slow later this year, which is supportive of higher gold prices.

"We are very likely to see the Federal Reserve ¦ talk about some risks in the FOMC minutes scheduled to come out on Wednesday," Melek said. "As we move into 2019, chances are that the U.S. economy is going to slow down a little bit ¦ I would expect gold to return to the $1,280s here."

Source: Kitco News

RELATED NEWS
Wall St, Main St. Look For Still-Higher Gold Prices...
Monday, 17 June 2019 14:43 WIB

Emas mencapai level tertinggi dalam lebih dari satu tahun pada hari Jumat, dan Wall Street dan Main Street melihat momentum tersebut berlanjut pada minggu ini, berdasarkan survei emas mingguan Kitco N...

Gold Has Enough Momentum To Push Through $1,350 This Week - Analysts...
Monday, 10 June 2019 15:06 WIB

Pasar emas menunjukkan kinerja mingguan terbaik dalam lebih dari satu tahun dan beberapa analis mengatakan bahwa logam mulia memiliki momentum yang cukup untuk menembus resistensi jangka panjang yang ...

There Are No Bears On Wall St.; Main St. Also Sees Higher Prices...
Monday, 3 June 2019 11:53 WIB

Wall Street dan Main Street melihat emas untuk mempertahankan momentum kenaikan yang baru saja ditemukan di minggu ini, berdasarkan survei emas Kitco News. Ketika dua minggu sebelumnya bergerak turun...

Gold To Prioritize U.S. Economy And Geopolitics As Price Outlook Improves - Analysts...
Monday, 27 May 2019 14:13 WIB

Prospek jangka pendek emas telah membaik karena dolar AS kehabisan alasan untuk terus bergerak naik dan ekuitas AS meningkatkan keraguan tentang kinerja masa depan mereka, menurut analis. Kekhawatira...

Trade Wars Not Building Enough Fear To Push Investors Into Gold - Analysts...
Monday, 13 May 2019 13:54 WIB

Ketegangan perdagangan global yang meningkat memompa volatilitas ke pasar keuangan, tetapi masih tidak cukup untuk mendorong harga emas secara material lebih tinggi, menurut beberapa analis. Kejatuha...

LATEST NEWS
Nikkei Surges to 4-Week Highs on Hopes For Trade Talks And U.S. Rate Cut

Japan™s Nikkei surged to four-week highs on Wednesday morning on news that the United States and China will rekindle talks on trade, while ongoing expectations that the U.S. Federal Reserve will cut rates this year supported sentiment. The...

Chinese Shares Surge Amid Positive US-China Trade Development

Stocks in Asia rose in Wednesday morning trade following positive developments overnight on the U.S.-China trade front. Mainland Chinese stocks soared in early trade. The Shanghai composite rose 1.51% and the Shenzhen component gained 2.18%, while...

Dollar Near 2-Week High Before Fed Decision as Dovish ECB Supports

The dollar held near a two-week high early on Wednesday ahead of the Federal Reserve™s closely-watched policy decision later in the day, supported by a surprisingly dovish European Central Bank and bearish eurozone economic data. The dollar...

POPULAR NEWS
Gold prices end lower, snap multiday rally
Tuesday, 18 June 2019 01:11 WIB

Gold futures finished lower on Monday, following a four-session streak of gains, pressured by uncertainty ahead of a meeting of the U.S. Federal...

Gold poised to snap 4-day rally as metal hits a wall at around $1,370
Monday, 17 June 2019 19:02 WIB

Gold futures retreated on Monday, after a multiday rally as bullion, which has benefited from concerns about international trade clashes and a...

Gold futures settle at a 14-month high
Wednesday, 19 June 2019 01:18 WIB

Gold futures climbed Tuesday to settle at their highest in 14 months, as comments from European Central Bank President Mario Draghi set the stage...

Gold Retreats From 14-Month High as Fed Cut in Doubt
Monday, 17 June 2019 09:21 WIB

Gold dropped after hitting a 14-month high on Friday as upbeat economic data at the end of last week suggested that there wasn™t an urgent...