The spot price of gold opened the new week above $1,750: for lovers of statistics this was the highest opening bell since November 2012. The price is now slightly declining against a recovery on stocks. Despite this, the main trend remains supportive and the price still tests the resistance area at $1,750-$1,760. In an uncertain scenario, traders often feel the need to increase the proportion of gold within their portfolio, using it as a hedge against a stock market correction.
Technically a clear breakup of the previous high in May would open space for a further rally, while on the other side the price is expected to find support firstly at $1,741 and later at $1,730.
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.