Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

Gold sinks to six day low under $1280

Market Analysis

XAUUSD, H4

GOLD fell yesterday significantly by a reportedly $6 bln nominal sale ahead of the U.S. GDP announcement. The key commodity fell from near $1,294.00 to $1,285.00. Modest dollar strength after the GDP data continued it closed the day below the 50 day moving average and right on the 20 day moving average at 1283.50, a six day low low. This level breached the important 200 period moving average on the H4 chart and triggered a short position with target 1 at 1279.00 (14 period ATR) and target 2 1273.60 at the recent H4 low. The RSI is 34 and falling, the parabolic SAR remains negative and the widening Bollinger bands suggest further weakness. Resistance to further moves lower at the recent Fractal low at 1281.50.  A reversal back over 1299.00 would negate this move.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Senior Market Analyst

HotForex

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.