Gold hit a new 6-year top yesterday, confirming the huge bullish pressure, as investors are seeking safe assets in this intricate geopolitical scenario. Trade tensions, currency war, dovish central banks and fears of an economic slowdown are the main reasons behind this rally. Despite this, there are elements that could curb this enthusiasm. For example, any reconciliation signal between Trump and China could send investors back to riskier assets. This situation has become risky for Trump too, so we cannot exclude this scenario.
Moreover, the area $1,500-1,530, was, between 2011 and 2013, an interesting support area and there are good chances that could represent a resistance level now. Of course, a lot will depend from the news related to the trade war.
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.