Investors’ appetite for gold remains high. Despite the strength of the greenback, bullion was not showing any weakness and the price is taking advantage of stock markets in red to recover and approach the resistance level of $1,575. In contrast to oil, the price remains in a long-term bullish trend and if we see a sustained return of risk-off on markets there could easily be space for a further rally. Vice versa, a fall below $1,550 would denote weakness of the yellow metal.
WTI price is attempting to rebound and managed to reach $52 yesterday, before slowing down to $51 today. The new calculation of the number of people infected by the coronavirus pushed stocks into red, with the optimism seen in the last few days slowing down and oil confirming its weak scenario of the last few weeks.
Technically there is a strong support zone between $49.50 and $50, which has stopped the decline of prices in recent trading sessions, but at this stage the barrel is not finding sufficient strength to overcome the bearish trend. A clear break out above $52.10 would represent a fist positive signal, while for a proper inversion, we would need to wait for a recovery to $54 at least.
