Gold: The lack of conviction suggests caution is required [Video]
Several of the major (forex) markets we cover consistently have been lacking conviction recently, and gold goes into that category too. The past week has been one of false signals and sessions lacking conviction. A run of small candlestick bodies reflect this, where the last five closing levels have all been within $6. This has flattened out momentum indicators amidst this consolidation. The argument would be that there is still a mild positive bias within the medium term range between $1660/$1764 and moves into $1700/$1720 seems to be still supported. However, the lack of conviction suggests caution is required. Will near term support continue to be found in the band $1700/$1720? The hourly chart shows the outlook is all but flat, with consistent resistance between $1730/$1733. Hourly RSI struggling under 60 for the past week and MACD lines struggling around neutral are the momentum reflection of this. Read More...
Gold consolidates as coronavirus fears endure
Gold prices inched higher in early trading on Thursday, as an increase in coronavirus cases threatened to derail economic recovery from the pandemic. A more dovish than expected June FOMC meeting also buoyed the yellow metal.
In Beijing, a surge in virus cases has taken place, with 31 new cases reported on Wednesday, bringing the total to 137 over the past week. Flights have been canceled, schools closed and 29 neighborhoods locked down. Data from Johns Hopkins University indicates that coronavirus COVID-19 global cases have risen to 8,359,869 with 449,229 fatalities. Read More...
Gold fades a bullish spike to fresh weekly tops, slides below $1725 level
Gold struggled to capitalize on its intraday uptick to weekly tops and dropped to fresh session lows, below the $1725 level in the last hour.
A combination of supporting factors assisted the commodity to break through its daily consolidative trading range and build on the previous day's rebound from the $1712-13 region. Concerns about a surge in new coronavirus cases, coupled with geopolitical tensions in Asia continued weighing on investors' sentiment. Read More...
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