A weak US Dollar combined with a new stimulus and a dovish Fed has created the perfect scenario for a new rebound for bullion. After some initial uncertainty, the positive momentum that has driven gold in the last few days has accelerated with the price jumping above the resistance level of $1,872-$1,875 to touch a new 3-week-high, before some modest profit-taking in the European morning.
Summarizing the last few weeks of gold, we could say that the news about vaccines pulled up stocks and crashed the gold price in November. After this initial movement, investors realized once again that central banks will be forced to print money and to keep generating stimulus. In short, interest in gold will remain huge for a long while yet.
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.