Gold price is consolidating above $1,950, remaining around $120 below the peak reached less than two weeks ago, but still 28% up from the beginning of the year. This period of consolidation comes after a massive rally, followed by a sharp decline. The price rebounded on the support zone of $1,870, finding another support zone at $1,920-$1,930. In the last few days volatility spiked up, while on Friday the price tried to stabilize after these massive movements. We will have a new bullish signal with a clear surpass of $1,965, in a scenario that remains dominated by coronavirus news and fears of further lockdowns. Expectations for further actions by central banks remain ever present and this is another supportive element for gold. A fresh decline below the support zone of $1,920-$1,930 would denote weakness.
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.