Gold Outlook | Gold: Running to Stand Still | 14/03/18

[IronFX The Global Leader in Online Trading]( 14th March 2018 [start trading]( [open demo account]( All trading involves risk. It is possible to lose all your capital. Gold: Running to Stand Still Gold had a slow start on Monday, and picked on a higher pace on Tuesday due to significant happenings in the US. On Tuesday, Rex Tillerson was removed from the position of US Secretary of state, rather unexpectedly putting more emphasis on the on-going uncertainty Donald Trump is known to create. Tillerson's dismissal was due to a variety of differences on matters regarding US issues with other countries like North Korea, Russia and Iran. We must note this is adding to a long list of people Donald Trump has suddenly decided to dismiss and this confirms his unorthodox approach to inside Government matters. The person chosen to replace Tillerson is CIA Director Mike Pompeo. Pompeo is widely considered to hold a hawkish attitude towards International disputes, taking as an example backing Trump up on the Trade policy adjustments. Should that be the case we could see a more aggressive US stance in regards to international matters like North Korea and Iran. In such a scenario, the possibility of such issues being resolved could be moving further away and uncertainty could be on the rise. All the above could have a significant impact by weakening the US Dollar which could be translated as risk by many analysts and traders looking for an opening to Invest. Gold is extremely sensitive to the dollar swings on US fundamental news but also economic news. The precious metal rose by $6.30 on Tuesday, after the news hit the scene to create its highest advancement in a single session since March 6 and greatest settlement since March 7. Furthermore, the dollar was seen to be in a general bearish sentiment on Tuesday with the Consumer Price Index growth rate being released. The rate gave mixed signals to the market, hence indicating that the four hike rate path of the FED for 2018, remains uncertain. Non-Farm Payrolls indicated that the U.S. economy added 313,000 new jobs in February, beating the forecasts. At the same time the Average earnings y/y growth rate came out at +2.6% instead of the expected 2.8% weakening the dollar against its major rivals. The positive sentiment towards the dollar turned to negative and weakened the greenback. It could be the case that gold may be stagnant in the short term, in order to sell off ahead of the FOMC announcements and rallying after them. Gold with its inverse relationship to the dollar is the perfect Instrument to hold as it tends to respond to aggressive market movement involving the US. Traders are expected to use the Bullion as a hedge towards any losses or external volatility created from the above situations. In China, Gold shipment were seen to be reduced for the last quarter of 2017. However the Bullion increased by 65% in January compared to previous month and increase at 62% compared to last year. Gold demand is expected to pick up in the following months. Technical Analysis Gold in currently trading around $1324 per ounce. Despite the unexpected news of Tuesday, gold has not been very active in the current week. It opened at $1322.84 on Monday Morning and throughout the week dropped to a low of $1314.95 and moved to a high of $1328.99. In the case of the bull market, we see the precious metal moving towards the $1335.00 (R1) resistance hurdle. If that level is breached it could aim towards the $1345.00 (R2) Resistance hurdle. In the extreme case of an aggressive bear market we could see the shiny metal breaking the $1315 (S1) support level and heading towards the $1300 (S2) psychological threshold. However, this is a very remote scenario. We expect the Bullion to remain in sideways movement between $1335(R1) resistance level and $1315 (S1) Support Level until the end of the week. Its $1315 (S1) Support Level has not been broken in the past 2.5 months and can be seen as a key level until now in 2018. Gold’s Daily chart below [Image title] Prepared by: Peter Iosif and Angelos Zittis [Facebook]( [Linkedin]( [Instagram]( [Twitter]( [Google+]( [YouTube]( - Tel: +44 (0) 20 3282 7777 - Email: support@ironfx.com High Risk Trading Warning: Our services include products that are traded on margin and carry a risk of losing all your initial deposit. 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