Futures bouncing after Wall Street free fall.

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Gold analysis – 12 June 2020

By: Ahura Chalki

Yesterday Wall Street again hade another tragic day, with losing 5.9% in S&P, 5.3 in Nasdaq, while Dow Jones Industrial Average lost 6.9%. Earlier today, in Asian season, while major Asian stocks also following the NYSE, US futures gaining back more than 1.2% on average.

Michael Matousek, head trader at U.S. Global Investors, in his interview with CNBC, mentioned that “You had a lot of fresh infections, which seemed to spook investors a bit so that pretty much put everybody into a risk-off and basically they’re selling everything except for the dollar and natural gas,”

For today, CPI, Industrial Production, and consumer confidence from the EU and the US will be in the spotlight, while Japanese industrial Production for April, lost the expectations. Also, Gold investors will be looking at the UK GDP as well, even though it may not have a direct effect in the Gold market, however in general market sentiment is important.

Positive economic data will help the market bears, while another missing in data, will be in favor of market bulls.

Technical overview – H1 Chart

RSI at 47, and Parabolic SAR dots forming above the candles. The positive trend line in Chart has been broken overnight and lower than the OBV trend line as well. Technical indicators are supporting the bears.

Pivot point: 1729.90

Resistance levels: 1738.24 / 1752.90

Support levels: 1715.17 / 1706.80

Today, the expected trading range is between 1706.08 support and 1738.24 resistance.


Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.

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