As markets scramble back to risk-off strategies, the gold price continues to rally. Bullion finished last week close to $1,900, pulled up by new stimulus from central banks and expectations for new measures in the upcoming months. News of the latest UK COVID-19 variant has given further fuel to the precious metal recovery.
From a technical point of view, gold is continuing to regain momentum. After an initial jump to $1,911, the spot price is consolidating on the $1,900 level, in a scenario which remains positive as investors rotate part of their portfolios from stocks to safe haven once again. A first support zone is placed relatively close, at $1,890, while the following key level is $1,875. A surpassing of the early morning peak at $1,911 would offer another positive signal.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
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© 2019 High Leverage FX - All Rights Reserved.