Gold/USD Daily Forecast after U.S government partial shutdown



Gold/USD Daily Forecast after U.S government partial shutdown



The U.S. government began a partial shutdown on Tuesday for the first time in 17 years, potentially putting up to 1 million workers on unpaid leave
After lawmakers failed to reach a compromise on the bill for urgent spending before the deadline, and president Barack Obama said that this decision is irresponsible as many employees will loose their jobs, so the fear of total government shutdown and the negative Chinese economic data have affected the gold prices to trade between small gains  and  losses which reflects the worry of investors and the market.


Concerning the technical analysis, the Gold/USD pair declined to reach the first expected target of $1326, which represents a strong support level, so today we expect the pair to bounce up and  to retest the 1337 and 1345 levels , and this is confirmed by the Divergence on the daily chart which reflects the shift of trend from bearish to bullish  correction, however and as we have mentioned before , this rally will be just permanent , and on the medium term trading  we expect the Gold/USD pair to retreat toward the 1309 and the weekly target will be at $1293 per ounce.

MBCFX Forex & CFDs Brokerage Firm