Gold Trying to Make Its Mind Up at the 200 SMA
Gold turned really bullish yesterday after Trump's comments, but the price seems to be stuck around the 200 SMA now
GOLD made a strong bearish move in the first couple of weeks in November after US and China sort of agreed to a partial trade deal. The risk appetite improved in financial markets and safe havens such as Gold turned bearish. Gold lost more that $70 during that decline.
But, the tensions have been creeping up again and markets have been uncertain about the trade deal, especially with Hong Kong protests in the background. As a result, most forex pairs have been trading sideways and Gold has been trading in a range as well.
The 50 SMA (yellow) was providing resistance for Gold towards the middle of November, while the 100 SMA (green) was providing resistance last week. But, yesterday’s comments from Donald Trump that he might postpone the partial deal with China turned the sentiment pretty negative again, sending safe havens surging higher.
Gold broke above the 100 SMA (green) and it pushed above the 200 SMA (red) on the H4 chart. But, it has slipped below that moving average again now, after rumours from Bloomberg that the Phase One deal might be official as soon as December 15. Although, uncertainty still prevails now, so Gold traders are holding around the 200 SMA now, waiting for more news before making the next move.
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