Gold trading idea for the week of 16 October 2017

Technical Analysis

We can see that, Gold has rallied significantly after the hammer that was formed the previous week as shown in the chart below. In fact it closed the week above 1300 resistance level.

Gold weekly

Fundamental Analysis

The economic data that is coming out of US are not overly impressive. There are also unsettled geopolitical tensions that could move gold markets higher.

Trading preference

With the technical showing a good setup for the gold to go higher and with fundamentals also not opposing this setup, our preference is to go long on the market if the price breaks above weekly close. Unless the strength of US$ comes due to a more hawkish policy from US, gold is likely to grind its way higher.

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