Gold sees a consolidation, aiming to reach 1,650/700

By Admiral Markets

Source: Economic Events January 15, 2020 – Admiral Markets’ Forex Calendar

Driven by the latest developments in the Middle East, Gold initially profited from the resulting risk-off mode, seeing a short-term push above 1,600 USD, which stabilised after no further escalation took place and US president Trump de-escalating the situation last week on Wednesday at his press conference.

While the precious metal is currently stable around its 2019 yearly highs of 1,550 USD, and a deeper corrective move down to 1,520 being an option, the overall picture for Gold stays positive.

Technically, on a daily time-frame Gold stays bullish as long as we trade above 1,440/450 USD, but also fundamentally the picture stays Gold positive.

This is especially true after the mixed US economic data over the last week, with yesterday’s US inflation coming in at 2.3% year-on-year in December 2019 at the highest level since October 2018 and with 10-year US-Treasury yields stabilising below 2%.

If tomorrow’s US Retail Sales disappoints as well, and comes in below expectations, Gold could take on bullish momentum again and make itself on the way up to the potential next target on the upside around 1,650/700 USD:

Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between October 12, 2018, to January 14, 2020). Accessed: January 14, 2020, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.

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