Hugo
0
All posts from Hugo
Hugo in HTO Trading,

GOLD: Potential bullish divergence

The U.S dollar rallied against Gold and on yesterday session after a strong U.S Initial Jobless Claims report that reinforced expectations for a mid-year rate hike by the Federal Reserve.

The Labor Department reported that the number of workers filing claims for jobless benefits fell to 283,000, far less than the 293K forecast by economists. The Americans have become more optimistic in recent months as fuel prices plunged, firings abated and payroll gains accelerated, making it more likely spending will strengthen.

Gold initially rose but found enough selling pressure on the 10-day moving average to turn around and close in the red near the low of the day. The precious metal fell 5.83% since the start of February and is in a bearish phase again. The Stochastic is showing an oversold market setting higher lows and price is making lower lows, signs that the downside may begin to get exhausted.

Expecting an upward move to daily key level at 1,222.88 on a bounce off the daily support at 1,204.70 (scenario 1).