GOLD
The presidency of Joe Biden started with expectations for a new stimulus and with a new rally for the bullion price. Gold jumped well above the threshold of $1,850 and is now dancing around the $1,870 mark. This rebound confirms the momentum for gold’s recovery has returned, as investors are betting on further monetary stimulus from central banks in the next few months. From a technical point of view, we can see a first bullish target at $1,900, while only a decline below $1,830 would denote weakness, as the main trend still appears supportive for the yellow metal.
OIL
Oil has fallen, once again, breaking through the $53.90-54 zone before slowing down below $53. From a technical perspective, the price is playing with the first support zone at $52.70. A breakdown of these levels would open space for further declines and increase the chance of a fresh test of $51.80-$51.90. However, given the main trend is still bullish for oil that still seems unlikely.
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.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.