Published On: 27 June 2019 | 12:00 PM

Gold broke out of a multi-year trading range to reach a six-year high of 1439.44!

 

• Ongoing geopolitical risks arising from US imposing harsh sanctions and threatening military strikes on Iran after Iran admitted to the downing of an American drone last week.

• Fears of negative outcome from the trade talk between Presidents’ Xi Jinping and Donald Trump this weekend might have resulted in more investors piling onto this safe haven asset.

• Federal Reserve Chairman Jerome Powell’s on 25^th June further reiterated on his June FOMC stance that the US economy sees heightened economic risks.  Amidst trade dispute,  declining consumer confidence, new homes sales and inflation data below Fed’s 2% target rate, the speech has resulted in markets and the USD pricing four rate cuts by April 2020.  Short term bearishness in the USD has caused a knee jerk reaction in the price of gold.

Gold seems to be in a 3-year bullish trend (leg) amidst a 10-year trading range

Support levels:  1370, 1300

If there is follow through buying next week, there are upside targets to 1500, 1570.

Looking at the positive outlook of Gold, you can use this chance to trade commodities CFD with us!

Below is the list of commodities CFDs that we offer:

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