The sell-off seen on the US Dollar is boosting gold recovery. Bullion is on a fractional gain today, but this week is on track for achieving a 3%+ recovery, while silver jumped by 7%. It is not surprising to see bigger movements on silver, which traditionally behaves as gold’s younger and livelier brother, showing more significant jumps when the trend is bullish and stronger declines when markets are in red.
From a technical point of view, gold is getting closer to the resistance level of $1,850. This area, formerly a support zone, was broken for the strong risk-on scenario seen in the last few weeks. Now, investors are realizing, once again, that gold will remain crucial in the medium and long term, as central banks will be forced to continue to print money to sustain economies.
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.