In the last few days, we have seen stocks going up, then declining and later recovering again. Despite all these movements, the price of gold has remained relatively stable. The correction seen on Thursday and Friday morning was followed by a strong recovery to the key level of $1,700. Volatility seems to have disappeared this week with bullion waiting for a fresh stimulus and the spot price continuing to trade either side of the threshold of $1,700.
Technically the trend remains bullish, as investors are still buying gold as insurance in case of a second wave of coronavirus, while central banks are forced to print large quantities of money to mitigate the crisis generated by the pandemic and the consequent lockdown.
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.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.