Risk-on is once again dominating markets, as investors are seeing much less risk on the Iran/US situation compared to just a week ago. Moreover, the signature of the US/China Phase One trade deal seems to be a matter of days, or even hours away. In this scenario, the gold price has fallen below the support level of $1,550, confirming the weakness seen in the last few days, after peaking above $1,600.
From a fundamental point of view, the majority of elements which have driven the price recently seem to be solved or close to be and the price is reflecting this new scenario. Despite this, elements like dovish central banks, which are the main reason behind gold’s long-term recovery, has not changed at all, resulting in a conflict between a bearish short-term outlook and a bullish trend in the long-term.
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.