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Gold analysis – 5 June 2020

By: Ahura Chalki

“Long term picture for gold remains quite good,” Commerzbank (DE: CBKG) analyst Eugen Weinberg told CNBC, adding that exchange-traded fund demand is “very strong”.

European Central Bank increasing the size of its Pandemic Emergency Purchase Program (PEPP) to the total amount of EUR1.35 trillion ($1.521 trillion)

Yesterday’s US jobless Claims show that 1.877 million Americans filed unemployment claims over the past week.

As it was expecting and I mentioned that on Monday analysis, Gold had a very volatile week and still will have it by the end of today.

News and data from different economies used to send it to different directions, as EU new stimulate package to calm the market, but US jobless Claims, even though was under 2,000K for the very first time after 10 weeks a row above that level, still it was more than market expectation, which worries investors about today’s NFP data.

Still forecast for the yellow metal is a volatile and unexpected movement for short time, however, for the long term, it is still in the positive area and seen as strong bullish, as long term fears of pandemic effects on the economy, still there.

Technical overview – H1 chart

RSI at 50 and the price is tangent with the OBV trend line, while Parabolic SAR and EMA crossing strategy, both supporting the bears. Technical indicators have mixed-signal, and none of the trends have enough power at the moment. Bears need to breach under $1692 and Bulls need to take over 200 HMA, sitting at 1721.

Pivot point: 1711.31

Resistance levels: 1725.73 / 1736.05

Support levels: 1701.00 / 1686.50

Today, expected trading range is between 1686.50 support and 1736.05 resistance.


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