Gold: Long-Term Buy (reiterated)
Gold Futures, 4-Hour Chart Analysis
The Shiny Metal seems to have completed a short-term correction that started after the Fed-meeting last week, and it gave a short-term buy signal today, when confirming a higher swing low at $1247, with a target of $1300. Our long-term recommendation remains intact while short-term traders could place stop loss orders below the $1240 support.
The $1262 and $1274 levels are ahead as resistance zones, together with the recent high at $1300. The escalating Middle East tensions and the deteriorating global economic conditions provide the fundamental background for the move, with the declining long-term US yields and the ongoing downtrend in the USD also helping the outlook for precious metals.