|
Gold Up to One-month High on Uncertainty over U.S. Presidential Election
|
Gold rallied to a one-month high on Wednesday as investor anxiety over the election after the renewal of an FBI probe into Democratic candidate Hillary Clinton's emails knocked the U.S. dollar lower for the second straight day. Gold rose to $1,307 an ounce, its highest since Oct. 4, and was up 0.73 percent at $1,296. Overnight gold weakened after the Fed statement signaling it could hike rates in December as the economy gathers momentum and inflation picks up. Fed’s decision to keep interest rates unchanged refrained from further inflaming electoral anxiety. Expectation on interest rates hike in December boosted investors confidence toward the dollar. The world's largest gold-backed exchange-traded fund, New York's SPDR Gold Shares, reported its first inflow in just over a week on Tuesday.
On chart, gold rallied to $1,307 at one point, breaching the 50-day moving average and approaching the 100-day moving average. But it pared most gains and slipped below the 50-day moving average once again, adding to the pressure at the range between $1,297 to the 100-day moving average at $1,315. Lingering around the 50-day moving average on early Thursday, its gains would be limited due to the long upper shadow line formed yesterday. Bullion’s downturn in the medium term can only realize as the 50-day moving average further moves down and breaches the 200-day moving average. Otherwise, the upturn trend started earlier this year is expected to sustain.
Silver tracked gold, losing the ground the 50-day moving average under the resistance of the narrow range between the 100-day moving average and 50-day moving average after a successful breakthrough. Silver was up 1.4 percent at $18.58 an ounce, after reaching $18.74, its highest since Oct. 4. Its movement at around the 50-day moving average in early Thursday greatly improved its chance to see a rally. But it is unlikely to rise above yesterday’s peak at $18.73 under the resistance of the upper shadow line formed yesterday. Technically, the pattern of the three moving averages remain intact with the 50-day moving average reversing its downturn. Silver is expected to extend its gains since this year if it could breach the resistance of the 100-day moving average.
|
（2016-11-03）
|
|
