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Gold analysis – 19 May 2020
By: Ahura Chalki
Gold was down yesterday after Moderna (NASDAQ: MRNA) reported positive results on Monday from its phase one trials for its COVID-19 vaccine. Even though if the EU and the US markets closed with reasonable gains, but the Asian market reaction earlier today was a bit more realistic and logical, as the vaccine just past the first stage of testing, and even it passed all testes, we need much longer time to production and worldwide distributing.
On the other hand, the US-China tensions raising more and have not good enough signs to avoid it, at least in this stage, the market will be more cautious. Generally, still, bulls have good enough encouragement.
For today, Fed Chair Powell Testifies will be the key event. If Mr. Powell once again avoids the negative rates and underlines the longer than expected time to rebound the economies, the yellow metal can take better advantage of that.
Gold technical overview – H1 Chart
OBV short live downtrend has been broken earlier, while RSI at 55 and CCI at 100, still supporting the bulls. May 15 and today’s opening level at $1732 are immediate support and May 18 opening rate at $1743 is the immediate resistance.
Pivot point: 1739.30
Resistance levels: 1751.23 / 1777.36
Support levels: 1713.17 / 1701.25
Today, the expected trading range is between 1713.17 support and 1777.36 resistance.
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