In the last few days, there hasn’t been much volatility on bullion as investors awaiting new market drivers. Only a clear climb above $1,930 would give new strength to the price, while although the bull trend seems to be in pause it is definitely not yet dead. We will have a weakness signal below $1,880, while the support level – and the first danger zone – for gold is at $1,850-$1,860, which is the low reached in late September. Equally, with no new stimulus, the price could remain in this major lateral phase for a while longer yet.
It could seem strange talking about a lateral phase with the borders so far apart (there are more than $200 between the September low at $1,860 and the August peak at $2,070), but this is just the consequence of the increased volatility that we have seen on all assets in 2020. Moreover, as previously mentioned, those significant intermediate resistance levels at $1,930 and $1,970, while $1,885 and $1,872 are the first support zones.
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.