Expectations for a quick economic recovery and for a vaccination against Covid-19 have curbed gold’s rally, forcing down its price by $20 immediately after it had reached a new 8-year-high. The quick return of risk on mode on stock markets has pulled liquidity away from gold with investors instead eyeing up the potential for quicker returns on equities.
Technically the spot price remains above May’s peak of $1,763, confirming the positive long-term scenario. In the short-term, the area between $1,790 and $1,800 represents a valid resistance area and this may stall any initial recovery attempts.
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.