Political uncertainty Pushes Gold to 2-Weeks High

With gold losing a shine since beginning of October and prices falling as low as $1,260, the gold has found some solid support and rose to the highest level since September 26 on Monday morning trading at $1,305.77.

In light of current political uncertainty including the loss of Merkel’s CDU party in regional elections in Lower Saxony, Austria turning right in elections and Spanish political uncertainty over the independence of Catalonia, traditional safe haven commodity profits.

Gold peaked at the beginning of September at $1,358, but lost some ground and fell as low as $1,260. The demand for gold rose with the set of political uncertainty roiling markets since the beginning of October. 

Technical picture

Gold is heading towards it 50% Fibonacci retracement of it latest slide downwards at $1,308.93. After breaking important Fibo level, gold is likely to head towards $1,313.57, its highest level since September 26.

Gold is likely to find support at 38.2% Fibonacci retracement at $1297.44.

Mid-term trend for gold is rather negative with analysts from ANZ bank forecasting gold to slump as low as $930 by the end of Q4 2017 and slide further towards $910 in first quarter of 2018.