Key commodities in November 2018
Gold/USD – Daily chart
Since its last peak in April 2018 at around $1,364 for troy ounce, the USD price of Gold has taken a great hit, reaching just over $1,159 – a 15% price drop in only four months. The strengthening of the US dollar has played a crucial part in this price reduction, being the currency in which gold is mostly traded in. From the above technical analysis, we can draw several conclusions about the state and potential forward movement of the international prices of the precious metal. Firstly, the price is struggling with the resistance formed around $1,237-1,238 (38.2% of the Fibonacci retracement) – after bouncing back this major resistance line and going below the 50-day EMA the price is now struggling with the 100-day EMA, which is acting as a strong resistance to the retracement movement. The general trend since mid-August is an upward one; however, the CCI (Commodities channel index) trend indicator is breaking out below -100, which implies a negative trend. This is further supported by the MACD indicator, which is crossing the 0 line (and into the negative area) and setting up a negative formation, with the MACD line going below the signal line. Continue reading “Key commodities in November 2018”
