Gold reconquers 1,310 USD – are we about to squeeze higher?
Source: Economic Events 03 June 2019 - Admiral Markets' Forex Calendar
Into the start of the new week of trading, we want to take a deeper look at Gold.
From a technical perspective the outlook switched to bullish with the head-shoulder formation staying active with the yellow metal trading over 1,310 USD into the start of the week.
The main driver seems to be US president Trump's tweet on Friday, announcing imposing tariffs on Mexico, which resulted in a risk-off mode in financial markets with 10-year US Treasury again making new lows and targeting 2%, leaving gold gaining bullish momentum and closing the week above 1,300 USD.
By reconquering 1,310 USD into the start of the week, further gains up to 1,325 USD are to be expected. Still, we only see this level as a potential stop-over up to the current yearly highs of around 1,347 USD.
Source: Admiral Markets MT5 with MT5SE Add-on Gold Daily chart (between 01 March 2018 to 31 May 2019). Accessed: 31 May 2019 at 10:00 PM GMT
Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2014, the value of Gold fell by 1.7%, in 2015, it fell by 10.4%, in 2016 it increased by 8.1%, in 2017 it increased by 13.1%, in 2018, it fell by 1.6%, meaning that after five years, it was up by 6.4%.
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