Gold declined sharply yesterday afternoon as a switch to risk on dominated markets. Rumours about a vaccination against the COVID-19 are diminishing investors’ appetite for safe haven assets. In early trading today, bullion is attempting a recovery but much of yesterday’s strong decline still needs to be absorbed by markets.
From a technical point of view, traders are watching to see if bullion can hold the key support level of $1,725-$1,730. A fall below these levels would increase chances for further declines and could make Friday’s rally a false break up. Otherwise, if the price holds on at $1,730, yesterday’s fall could be absorbed by markets and the bullish trend would slowly recover strength.
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.