Gold responded positively to the additional measures taken by the Fed

Central banks are providing liquidity at an unthinkable pace. QE3 was $40 billion per month and the Fed today promised to buy $125B per day. On the fundamental side, the picture for gold has never been better. Money is being devalued and high-quality debt will yield next-to-nothing for years.

On the supply side, there are even announcements of mines closing to protect workers. So there will be less gold.

The one big worry is that the virus causes enough political instability somewhere or financial stress to spark sovereign selling. That’s a real risk.

Technically, gold has been able to keep lows November 2019 lows and is currently trading at its highest price since last Wednesday. The price found support at the weekly 50 MA.

The weekly chart’s RSI oscillator signals a potential hidden bull div, which would mean a more likely upward movement than a continuation of the sell-off. A buy signal confirmation would close the current weekly bar above $ 1,499.

On the daily chart, the price consolidation range remains between $ 1,450 and $ 1,550. Possible break above the horizontal resistance between $ 1530-1550, the next resistance level is around $ 1610. In the event of failure, continued consolidation in the said price range is expected.

4H chart – RSI broke above the downsloping resistance line.

 Junior Trader Radi Djuma

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance