The gold price is slightly suffering against the renewed strength of the greenback. The spot price dropped below $1,700 once again, but the decline has been modest so far and it is not changing the main trend, which remains supportive for bullion. It will be crucial for the spot price to hold above $1,670, as this level has proven a strong support in recent weeks with the price rebounding when it has neared it.
From a fundamental point of view, there are some concerns about physical demand, particularly jewellery, which plummeted in Q1 2020 due to coronavirus, with investors assessing if this decline will be completely covered by the rise in investment demand.
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.