Chinese New Year Bolstering Gold On Sentiments of Physical Demand - Forex News by FX Leaders

Chinese New Year Bolstering Gold On Sentiments of Physical Demand

Posted Friday, February 9, 2018 by
Arslan Butt • 1 min read

What’s up, FX geeks.

The yellow metal Gold trades with bullish sentiment today as investor’s focus remains on both, the technical and fundamentals reasons. Are you looking to make some pips on Gold?

 

Chinese New Year – Physical Demand Sentiment Dominates

On Feb 16, our Chineses friends will be celebrating the New Year. Being one of the world’s top Gold consumer, the Chinese buyers typically trigger physical demand for Gold near New Year. Therefore, the Gold is likely to stay supported on the back of Chinese physical demand sentiments.

 

Technical Factors In Play

Secondly, on a daily timeframe, the Gold is supported above $1,307/1300 zone. It can be hard for Gold to break below these levels, particularly when the market is trading in the oversold territory.

Gold - 240 - Min ChartGold – 240 – Min Chart

Whereas, the smaller timeframe is facing a solid resistance at $1,320 today. Below this, Gold can stay bearish until $1,312 and $1,308. The bullish breakout above $1,321 can add more buyers in the market to target $1,328. Good luck today!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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