Gold between weakness and uncertainty
Gold prices slid lower on Friday, as the dollar regained some ground after Thursday’s three major risk events, although markets were still awaiting the final results of the U.K. election.
The dollar recovered despite Former FBI director testimony on Thursday which accused President Donald Trump of firing him to try to undermine his investigation into possible collusion by the Trump campaign team with Russia’s alleged efforts to influence the 2016 presidential election.
A stronger U.S. dollar usually weighs on gold, as it weakens the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Gold losses were attenuated following UK U.K. Prime Minister Theresa May’s Conservative Party losing its parliamentary majority in in Thursday’s general election, potentially disrupting Brexit negotiations.
May faced calls to leave the government on Friday after the election left no single party with a clear claim to power just 10 days ahead of the start of Brexit negotiations.
Gold trades in an upward trend line according to the Bloomberg 4H Chart.
If there is a continuation of the bullish momentum, the commodity could break out above 1279.91 and possibly extend more gains toward the 1286.36.
In the case of a bearish scenario, Gold could fall back toward the 1269.21 and extend losses through the 1264.96.
Now is your chance to make a profit!
Open an account here!
***Information contained in this news letter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making, but merely provides information from the market for its clients as additional information being made available as per the events occurring in the financial markets.
HIGH RISK WARNING:
Trading Foreign Exchange (Forex) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.
© Copyright 2015 – CM Trading – All rights reserved