WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: Gold demand improves but price remains weak

Posted by Edward Moya on Apr 20, 2015 10:50:00 AM

WWM GOLD APR 20 2015

As of the beginning of April, Russian gold purchases had the biggest increase in six months, bringing their reserves to 39.8 million ounces from 38.8 million. The news of improving demand from the fifth biggest gold holder did not help price rally.

Early in NY, gold prices were down .87% to $1,192.60 an ounce by 10:38 AM EST. Price action on the gold daily chart shows that bearish momentum returned after making a one-month high at $1,224.50. The current daily candle appears poised to close below the 50-day SMA, which is trading at the $1,195.30 level. Further support may target the $1,167 region.

It is around that area that we could see a bullish butterfly pattern form. If U.S. dollar strength remains robust, further downward pressure may target the $1,150 area. To the upside, $1,210 and $1,250 will serve as key resistance levels. If price does have a daily close above, $1,250, we may see a clear path towards $1,300.

The trade: Sell Gold at $1,197 with a stop loss at $1,207 and a take profit at $1,167. The Risk/Reward Ratio is 1: 3

Edward J. Moya

Senior Market Strategist

Topics: commodities, gold, $GLD, economic policy


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!