Gold surrenders


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Optimism or fear?

By: Ahura Chalki

Gold gave up all its gain of the day before in one hour, in yesterday’s first hours of N. American season, same as DXY.

Gold lost the ground for a few reasons. Sell of came after that it touched its highest level since 2012 and fears of pullback and correction, put some investors and traders in sell position to guarantee the profit, while stock markets just finished their best quarter in a decade. News about “Pfizer’s” vaccine also was another reason to help the positive sentiment that takes over the market. Positive sentiment raise with better than expected data from the EU and China, especially in PMI data, published yesterday.

For today and eyes will be on NFP and Jobless Claims data. Better than expected data can send the yellow metal deeper since optimism will be more realistic, while lower employment in the US, can confirm the longer crises, which will put the Safe-Havens in a bid, once more.

Technical overview – H1

Gold is trading under its intraday pivot point (1772), CCI under -100, RSI at 36, all supporting the more bears, as well as EMA crossing strategy. Trading under $1765 can send the piece lower, while bulls need to take over $1775 to be confirmed.

Pivot point: 1772.00

Resistance levels: 1785.05 / 1802.10

Support levels: 1754.90 / 1741.85

Today, the expected trading range is between 1754.90 support and 1785.05 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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