The strengthening of the US dollar curbed gold’s attempted recovery in yesterday’s trading session. This morning, despite stock markets in green, bullion is rebounding with the price now testing the resistance area of $1,470. It seems that investors are waiting for a clear signal on direction and particularly any news coming from the trade war.
We have now a few key levels with $1,450 as the first support area, while a solid recovery to $1,470 will increase the chances of the price bouncing back to $1,500 in the near future. Guidance from the Fed at its upcoming meeting is definitely another element to be considered.
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.