Gold broke through the resistance level at $1,850 as the weakening US Dollar, some bits of risk-off on stock markets and a final attempt of the Trump team to renew its campaign against China pulled up financial demand for bullion. Moreover, the drop in the price of the last few weeks has lifted physical demand, generating the perfect environment for a rebound for the spot price. This is exactly what we have seen in the last few days, when gold was able to jump up from the four-month-low and recover, surpassing the key level of $1,850.
Technically, the short-term trend remains supportive, while enlarging the zoom, there could still be some bearish pressure due to some profit-taking and the continuation of the risk on approach seen in November albeit with the odd day of exception, like yesterday.
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.