Gold‘s spot price was stopped by the resistance area placed at $1,745, despite the crash of US stocks seen yesterday. As at the start of the crisis in March, the turmoil in stock markets did not generate any immediate rally in gold, as such a violent correction also meant some investors needed quick liquidity for margin calls, and had to close their (profitable) positions on gold in order to keep alive some other less fortunate trades. The main trend remains supportive for bullion, which is recovering strength this morning, in a favourable environment for other gains.
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.