Will Gold Price Drop Towards Its 1 Year Low?
Nomsa Ndlovu | Jul 18, 2018 02:39AM ET
Gold
After starting the week with a small consolidation the gold price eventually broke the 7 months low to create a new low for the year 2018. The fall in price took place after the Federal Reserve Chairman Jay Powell announced that the interest rates will continue rising. This resulted in the dollar becoming even stronger forcing the gold price to weaken more.
Looking at the general trend of price where it has been decreasing in falling peaks and troughs for the past three month, we can see that price actually went past the previous trough to create a new one. This could be seen as another signal of thedowntrend continuation. At the moment price is sitting at 1227.27 following the 1.0% drop.
Looking at where price is currently sitting it could eventually fall towards the support level at 1212.07 which is its one year low as seen on the chart above. Those that have been in the trade can look to collect more profits close to the support level at 1212.07.
While holding on to the trades it is adviced to be aware of the U.S Federal Reserve news that will take place later in the afternoon as this might have an impact on the gold price again.
Crude Oil WTI Futures
The drop in oil price continued yesterday as price decreased with about 1%. This decrease was motivated by the news reporting an increase in the U.S inventories. The American Petroleum Institute reported an increase of about 600 000 barrels of crude oil.
At the beginning of yesterday it looked as if price was recovering from the 4% loss of Monday. But it only pulled back to the resistance level 72.73 and continued to fall again as it failed to break the resistance level. Currently price is sitting at 71.78 and might continue falling towards the support level at 70.80.
There are news scheduled for later in the afternoon on crude oil stocks which will have an impact on the price of oil. So it is good to be on the alert of these news especially if you have trades so that you do not be affected by any drastic changes.
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Platinum
Yesterday platinum was one of the metals affected by the rising interest rates on the U.S. Price fell dropped from 822.3 to 812.9 where it is currently sitting. This was a decrease of about 1.1% and price might continue falling towards the support level at 805.5. The U.S Federal Reserve news scheduled for later in the afternoon might will have an impact on the price of platinum, so it is best to trade with caution.
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