T1FS Daily Report

Aug 22, 2018

Once again gold has edged higher during the Asian trading session, making a high of $1198. It did however come off from the high as traders took profit at the end of the Asian session.  

Europe started with small buys, looking to trigger some stops from the upside. It traded above the $1200 level, however some small sellers appeared and took it below this level. We believe there is room for more push on the upside and that it might try and trigger further stops around the $1202 level.   

Overall  gold is consolidating above this month’s low of  $1160.50, making a base for an upside move in the last quarter of the year. We are in a summer trading session, with low volume trading these days, and daily traders are benefiting from the small range we are seeing; this has been especially true this week.

Gold still looks heavy with more room to trade in the lower ranges. In the medium term we still think it is a good buy at these levels, or be long calls on the gold. Technical indicators are still negative and show that there is still room for a downside turn. The market awaits further direction from the Fed, as to whether there will be another interest rate hike before the end of the year.

In other related news, Russian Central Bank has added 26.1 tonnes of gold last month, bringing its holdings to 2170 tonnes according to the IMF. Meanwhile the ETF continues to sell and reduce their holdings, having cut 129,821 ounces from their holding on yesterday’s session.

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