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Gold in Weekly Chart
By: Ahura Chalki
Gold kept its side movement around $1770 for the second day in a row. More raising at the price and breaking above $1,800, needs a very strong reason, while besides all worries about new cases of COVID-19, there are two things which may reduce the fears of investors. First of all the vaccines and several researches all around the globe and hopes that at least one or more of them will pass the tests and then we will have a matter of time for public vaccination. Secondly and at least if it’s not hitting hard, it will be hard to re-establishing restrictions and lockdowns, while we can see the economic damages from the first lockdown.
So, there is a doubt and the risk of this doubt is profit-taking and exiting from the market or moving the liquidities to stock markets, which will create a sell-off in the Gold market, especially if stock markets can keep the positive mode, even with slow movement, by end of the week and NFP data can able to persuade people to hope, if not, above the psychological level of 1.8K is so likely to reach.
Technical overview – H1 Chart
RSI is flat at 54 the same as the OBV trend line. Bollinger bands getting closer together signaling of next bigger movement. $1775 and $1765 (Yesterday High and Low) are immediate support and resistance and create next move, gold need to be traded stable out of these levels.
Pivot point: 171.15
Resistance levels: 1776.86 / 1780.80
Support levels: 1767.20 / 1761.50
Today, the expected trading range is between 1761.50 Support and 1780.80 resistance.
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