It is now been a couple of weeks in which the correlation between gold and stock has been positive, with both moving in the same direction rather than their more typical inverse relationship. Yesterday saw stocks in red with gold also losing ground, while today bullion is recovering in conjunction with markets in green.
Technically the price is again approaching the key level of $1,700. There is now quite a solid support zone placed at $1,675 and a clear break above $1,700 could open space for further rallies. The resistance areas, where we would expect gold to struggle to continue its recovery, are placed at $1,710, at $1,735 and $1,747, which is the recent high reached on April 14.
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.