flag-gb flag-my flag-zh flag-id flag-th flag-vi

Gold is constrained in a narrow range

Gold is consolidating in a fairly narrow range, staying close to the 8-year maximums which were set this week.

 

Demand for precious metals remains high due to the risks of the start of the second wave of the pandemic and the worsening situation in the global economy. The restraining factor for gold is USD. In recent days, the dollar index has grown by more than 1%.

 

According to Johns Hopkins University, as of June 26, nearly 9.6 million cases of COVID-19 were reported worldwide. In the United States, a new record of detected diseases per day is set. Local restrictions have been introduced in some areas of Lisbon and Beijing, the Australian state of Victoria and the western regions of Germany. In some grocery stores in Australia a limit on toilet paper has been reintroduced.

 

Recently the US Senate passed a bill that imposes mandatory sanctions on people or companies that support China’s efforts to limit Hong Kong’s autonomy. Investors expect another escalation of the conflict between official Beijing and Washington. This will lead to another outflow of capital from risky assets in favor of protective assets.

 

Despite a local corrective decline, gold retains good opportunities for further growth amid active measures by the Central Bank and governments to increase stimulus measures for the economy.

 

Regarding the chart, the price locally stuck in the flat of 1756.00-1767.00 which can be broken.

 

Resistance Levels: 1767.00, 1780.00, 1800.00;

 

Support Levels: 1756.00, 1745.00, 1723.00.

 

The main scenario - a consolidation in the range of 1756.00-1767.00.

 

An alternative scenario - a breakdown of the resistance at 1756.00 and an increase to 1780.00.

 

The current fundamental outlook is neutral. We would consider longs from the level of 1756.00

Latest news

No Deposit Bonus 100 USD – available for 3 days only!

2020-11-23 08:44:40

Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! 🏆 Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts 📍 How to get the bonus: 1) Register an […]

Deposit Bonus 200%

2020-11-03 08:45:33

Only from November 02nd to December 04th, 2020, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of 200%? […]