Hugo
0
All posts from Hugo
Hugo in HTO Trading,

Gold: Alive and kicking

Gold prices rose to 6-week high as China and Greece boost instability in the markets.

Europe and America also followed big falls across Asian stock markets last week, after China August PMI data showed that factory activity in the world’s second-biggest economy contracted at its fastest pace in more than six years.

In Greece, Prime Minister Alexis Tsipras resigned last week and called snap elections in September, a move aimed at strengthening his hold on power.

Uneven growth in the United States and the prospect of the US Federal Reserve’s (Fed) first interest rate hike since June 2006 also have investors fleeing to precious metals.

The commodity since the beginning of the year fell more than 2.0% and turned into a recovery phase last week, trading above the 10 and 50-week moving averages. Last week gold rallied and closed near the high of the week on a wide range week. Stochastic crossed above the 20 line, showing a strong bullish momentum although it sits below the 50 mid line.

Expecting an upward move to a key level at 1238.14 on a break above the weekly resistance at 1,177.76 (scenario 1) or a break below the weekly resistance at 1,131.65 could push upward gold to a Year lows at 1,070.83 (scenario 2).