04 July 2018 ( Lagos ) : Gold bulls have found support in the form of a weakening Dollar this morning with prices rebounding towards a fresh weekly high at $1260.
While the yellow metal has scope to appreciate further amid a softening Dollar, the outlook remains bearish in the medium to longer term. This year, Gold is still at risk to losing more value on the outlook that the Dollar could strengthen further.
Much attention will be directed towards the US jobs report on Friday which could play a key role in where Gold concludes this week. A strong NFP figure coupled with signs of accelerating wage growth may boost speculation of higher US interest rates – ultimately punishing Gold.
In regards to the technical picture, Gold remains bearish on the daily charts. A technical rebound is in the process with prices trading above the 23.6% Fibonacci retracement level of $1254. An intraday breakout above $1260 could encourage a further incline higher towards $1264.43. Alternatively, a failure for bulls to keep above $1251 could open a path back towards $1245.
Source: Lukman Otunuga, Research Analyst at FXTM
Reporting for EasyKobo on Wednesday, 4 July 2018 in Lagos, Nigeria
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