Despite an apparent flight to safety and sale-off in the dollar on Monday, there was little love for gold that usually well these circumstances
gold was trading at a key resistance level around $ 1,170 where the descending trend line -. 22 peaks in January - crosses a prior level of support and the level of 61.8 fib -. 18 May to 20 high low in July
As we have seen elsewhere, the key resistance levels were broken into chaos yesterday, but it was not the case here.
Why gold will rally?
there are a number of factors that can lead movements of gold and he is calling refuge is one of them, its role as a hedge against inflation seems to be more important at this time. Probably because we are in a low-inflation environment and yet the Fed is considering a rate hike that could create more deflationary pressures.
Can gold go higher from here?
Of course, it can but the driver of this movement is more likely to be changes in rate hike expectations that uncertainty and risk aversion, unless of course we see much of crisis. But it would more than likely change the Fed's plans in the process.
An increasing number of people are already suggesting that volatility in the Chinese market which has now spilled over to Europe and the United States could force the Fed to hold off a hike in September and perhaps even in December.
What do the cards say?
when they still suggest there is a bearish bias on the markets. Failure to $ 1,170 on a hectic day for markets is a great rejection. It will be interesting now to see if it was tested again in the coming weeks.
If we see another run at these levels after a retracement, it may suggest the market is becoming more optimistic. Confirmation of this would come from a rupture of the descending trend line and high yesterday.
The 4-hour chart suggests it does not come off the fib level of 38.2% in the selloff has gained momentum on the stochastic and MACD . If we see the formation of differences fib levels 50 and 61.8, it may suggest a further uptrend resistance level will follow.
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