Karachi, January 03, 2019 (PPI-OT): Gold
Gold markets broke a little bit higher during the trading session yesterday, continuing a bullish move that it has seen form of the last several days. At this point, the market probably continues to find buyers on dips, and at this point the 20 day EMA getting ready to cross above the 50 day EMA, which is a bullish sign as well. Over the last several months, it has been trading between $1200 on the bottom, and $1400 level on the top. Short-term pullbacks offer value that can take advantage of, and the fact that the world has entered a “risk off” situation and suggest that gold should continue to go higher. It is going to be very choppy and difficult, but if it get pullbacks, it should take advantage of those opportunities in small bits and pieces. The $1250 level is essentially going to be the “line in the sand”, and if it break down below then it probably have a complete turnaround.
Gold futures climbed to the highest level since June as a decline in Asia’s equity market
Spot gold prices gained about 5 percent last month, the most since January 2017
Prices for the yellow metal saw more safe-haven buying interest amid a still very wobbly U.S stock market
A sell-off in the stock markets today is prompting some safe-haven demand
Some investors expect the precious metal to pass the $1,300 psychological resistance level in the near-term
Gold prices inched up today as a dip in Asian equities and worries about a sharp global economic slowdown propelled demand for safer investments. The dollar index, which tracks the greenback against a basket of major currencies, was hovering about a one-week peak touched in the previous session.
Spot gold gained about 0.2 percent to $1,286.62 per ounce, having earlier touched its highest since June 15 at $1,290.09. U.S gold futures were up 0.4 percent at $1,288.80 per ounce.
Meeting between U.S congressional leaders and President Trump yielded no sign of an agreement to end a partial government shutdown, in its 12th day, as the president stuck to his demand for $5 billion in funding for a border wall.
Gold prices hit a 6-month high and the trend is up on a near-term basis which is inviting technical-based buying interest. Probably some new speculative fund money coming into the market combined to push gold prices higher despite the stronger dollar.
2019 is already getting off to a volatile start and it is expected to see the political and economic uncertainty of 2018 continue and deepen, which will support gold.
Global equities were reacting negatively to more weak economic data coming out of China, the world’s second-largest economy. While U.S benchmark stock indexes were trading higher as gold futures settled.
There is some fading optimism for the euro zone area which is giving gold quite a good lift. It is a continuing trend of what have seen in the latter part of last year.