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Gold Bullion testing higher levels as dollar wanes

Paul Chakaduka


Gold Bullion testing higher levels as dollar wanes

Direction: Long (BUY)

Entry: $1230

Stop: Loss: $1216

Take Profit: $1245

Take Profit: $1250

The dollar continues to be on the back-foot as economic data released out of the US continues to disappoint. With the weakening greenback, commodities have recovered from their recent lows with higher targets for precious metals are insight. Gold has advanced steadily towards a key resistance level of $1230/ounce (this is also the metals 200day moving average).  A close above the $1230 will open targets of $1245(which coincides with the 50% Fibonacci retracement level the blue line below) and $1250.  If the yellow metal fails to close above $1230, it is likely to retrace back to the 38% Fibonacci retracement level of $1216. Traders could look at a buy of the yellow metal at $1230, with a Stop Loss of $1216 and a Take Profit of $1245.

bullion dollar chart.gif

Source: Bloomberg 2017

Fell free to contact our desk if you want to discuss the trade or require assistance: +27 87 940 6108

Wishing you profitable trading.


Paul Chakaduka | Trading Specialist at GT247.com

Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.

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