Gold is continuing to show little volatility with the price waiting for new market drivers. Bullion is languishing just below $1,490 and was unable to recover further, despite the weakening of the greenback. As said in previous comments, we are seeing a real challenge between the short-term scenario, marked by the relative strength of bears, and the medium-long term bullish trend, which has driven gold up by 15% YTD.
Photo by Avonlea Jewelry.
On base metals, there is a lot of attention on nickel, which is up more than 50% from the beginning of the year but collapsed by $825 in just a few minutes a couple of days ago, before continuing that bearish trend yesterday with a 5% loss. These are clear signals that some big investors are taking profits after the long rally. From a technical point of view, the price is now testing the first key support at $16,000-$16,250, while the next level to monitor will be $15,400-$15,500. On the flipside, a recovery to $17,000 would represent a first positive signal after the weakness seen in the last few days.
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.