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Gold analysis – 21 May 2020
By: Ahura Chalki
- A Bloomberg report quotes hedge fund tycoon Crispin Odey as saying that governments may ban private ownership of gold if they lose control of inflation. (Investing).
- Gold gave up two consecutive days of growth
- Asian Stocks trading mix
- US futures back into the red after closing higher.
Wall street closed higher last night, while futures losing in their earlier Asian season. At the same time, Asian stocks trading mixed. Nikkei trading higher, but just 0.1%, while CIS 300 and Hang Seng traveling between positive and negative numbers, with no direction.
On the other hand, Bloomberg reports about the possibility of banning the privet ownership of gold. Since the trillions of dollars of liquidity that are being injected into the global economy can lead directly to the gold market – Nothing else to buy to be sure of safety – and it will cause the sharp raising of inflation.
As I mentioned other days, besides coping solutions, we need to think about their effect on the future economy as well, while trying to end the lockdowns.
The global economy is involved in seizures, COVID-19 caused not just health problems and disturbing the economies right after that, it also caused the disruption of political relations, which is the longer term, it will also affect directly in the economies.
Therefore, fundamentals, all still about supporting the higher prices, as it is still the best Safe-Haven.
Today, the PMI data from the EU and US, besides Fed chair Powell Speak are in the spotlight.
Gold technical overview – H1
$1752 is key resistance at the moment, breathing above this level, will bring the $1765 and $1800 comes after that. On the flip side, breaching under $1733 will open the doors for $1726 (200 HMA) and $1717.
Pivot point: 1744.80
Resistance levels: 1747.08 / 1755.62
Support levels: 1736.26 / 1734.00
Today, the expected trading range is between 1734.00 support and 1755.62 resistance.
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