Gold Analysis


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Gold consolidates Supported by Economic Concerns

Gold prices continue to consolidate in the previous session supported by a growing concern related to global economic growth and the risk of deflation.

Pumped Money Market

Trillions of money related to monetary policy stimulus given to the market. Global central banks have been and continue to accommodate the market in recent years with the aim of improving economic growth and inflation. At this point, what else can the central bank do to market that has been accustomed to act as pump more liquidity into the system.

Central Bank Action

The ECB seems to be on the cusp of bond purchases after objections from some members of the European Union, especially Germany. SNB kept threatening to make negative interest rates. While the Fed has stopped buying bonds, however the Fed maintain a highly accommodative stance ahead of next week’s FOMC meeting.

Once again, the debate centered on when the “right time” to raise interest rates continue to be perhatisn market.

Speculation Interest

The market believes now that the economic recovery is still slow will not be enough to sustain the economy of other countries and regions that have not been affected by deflation, or even dragged back into recession. That is why the market does not believe that the Fed will take any action to raise interest rates earlier than expected.

Global countries continue to push for the conduct of monetary easing policies that will make gold prices tend to be higher if the global market up and have the same conclusion. And signal monetary easing policy when super accommodating and currency war is far from word will end.


On the movement Thursday, gold trading opened in the range of 1225.26 per troy ounce. Gold prices fell by moving down towards the lowest prices daily in the range of USD 1215.76 per troy ounce. Finally, the price of gold was in the range of USD 1227.78 per troy ounce. The movement of gold gain against the dollar as much as USD 2:52.

In general, the movement of gold in the 4-hourly chart looks still in bullish condition. Gold prices seen above the simple moving average indicator 20 and 50 which is a support area for the movement of gold. Indicator of relative strength index (RSI 14) at the level of 57 to give an indication of the potential price to be in a bearish condition. Likewise, the momentum indicator 14 provides an indication that the price will still move bearish.

The intraday bias, gold price movements on the 4-hourly chart looks continue to rebound phase to move up and the current strong price holds above the psychological area. If the price of gold, the dollar strengthened against the resistance of USD 1238.13 per troy ounce to be penetrated by the movement of the price at which it is likely the price will move up towards resistance at USD 1267.33 per troy oucne. Conversely, if the price of gold moves down the support of USD 1214.73 per troy ounce will first penetrated where there is potential for the gold price will move towards support at USD 1184.45 per troy ounce.

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