Choose the Language

  • English
  • Arabic

Pipsofx Learn trading step by step

Gold analysis Wednesday 5th of July 2017

Gold analysis Wednesday 5th of July 2017

 

In the midst of weak trading, which was expected due to the holiday of Independence in the US , the gold rose during yesterday's trading to recover from the lowest level in about 7 weeks, the main reason that supported gold to rise yesterday is the return of geopolitical fears in the Korean peninsula. North Korea launched of rocket that landed In the Japanese territorial waters which caused the purchase of gold as a safe haven

North Korea said yesterday it had tested a successful launch of a new ballistic missile just days before the G20 meeting, scheduled to discuss effective steps to rein in North Korea over its nuclear and missile programs.

Danesky's chief analyst, Jens Pedersen, believes that the market may turn to buy gold as a result of the renewed conflict in the Korean peninsula. But he also pointed out that the market may not see further deterioration and the need to buy safe haven because The Korean conflict has been burning for a while.

Technically

A break of 1225 and stability above it could be the motivation for the precious metal to rise towards the 200 SMA at 1233 followed by the 1240 resistance level and if breaching this level it may continue to move towards the 100 MA at 1248 and then 1251.

In the case of a decline and stability below 1225 and breaking the 100 SMA at 1218, this may cause gold fall towards 1198 and if this level is breached it could extend towards 1180 

Add