Gold has jumped to a fresh 6-year-high of $1,555 in the first few hours of this week, before settling around to $1,530. This new bullish rally is confirming the huge appeal of bullion and the positive environment for the precious metal environment, as investors are betting on further trade tensions between the US and China, while central banks will probably be forced to be dovish in order to mitigate the economic risks coming from trade war and the possible slowdown of the global economy.
From a technical point of view, gold is now just above the former resistance (and now support level) of $1,530, with a new resistance placed at $1,555. The first support levels are quite far down at $1,500 and $1,475.
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.