Gold price has failed to continue its recovery, falling again below the support zone of $1,850. This comes despite a moderate return to risk-off in stock markets, and while the Dollar remains weak. This could be seen as a signal of some weakness of the underlying strength. Gold had been expected to hold yesterday’s $1,850 support level, and the failure to do so indicates investors are cautious on further betting on the precious metal in the current scenario.
Technically the first support zone is now placed at $1,830, while a new recovery above $1,850 would be seen as positive. For a clearer bullish signal, we would now need the price to surpass the top reached earlier this week at $1,875.
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.