Gold Bullion Trading Outlook Week 2 2019 and welcome back to all of you after the Christmas and New Years holiday period. In what feels like months, the new year has started oddly for many markets with little confidence in direction from the current leader of the free world. One certainty to emerge is volatility – a market state where our traders can generate some quicker returns. Chief Trading Officer Rameen Alqaseer brings to us his first market analysis for 2019.
General Market Analysis
Analysts cited the recent dovishly construed commentary from Federal Reserve policymakers, as well as political concerns such as the partial U.S. government shutdown. We have been hovering around the $1,300 level for the past few weeks, and a lot of longs have entered the market recently. If we cannot manage to get a settlement above $1,305, we could be in for a correction. Traders may choose to liquidate longs rather than roll them into April [futures contracts]
Wall Street and Main Street remain bullish on the near-term outlook for gold prices, as per the survey that was made between Wall Street and Main Street total of 65%, called for gold prices to rise over the next week. 19%, looked for gold to fall, while 16%, called for a sideways market.
Gold Market Technical Analysis
Gold created an inverted hammer on Friday, making today’s close is pivotal. Acceptance below Friday’s low of $1,286 would validate signs of bullish exhaustion near $1,300 and could yield a corrective pullback to $1,260. A daily close above $1,300 is required for bullish continuation. The former scenario is more likely to play out as the impending bullish crossover between the 50- and 200-day moving average (MAs) – a big-time lagging indicator – signaling short-term overbought conditions.