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Gold and week ahead!
By: Ahura Chalki
The first day of the week for the Gold market was testing the resistance but filed due to positive sentiment in the stock markets. From the fundamental overview, Gold is still getting supported by COVID-19 fears, since the second wave sounds terrible in many countries. In the US more States are slowing down the reopening or even have imposed new restrictions as what California States does in the US.
On the other hand, US-China tensions heat up in the South China Sea and make investors more worry about even their earlier trade deal.
In the general image, American New policy over Southeast Asian countries is accompanied by Chinese new policy in the Middle East, with the help of Iran and Russia, which can be the beginning of an economic and even military confrontation.
In the longer-term, the environment is in favor of Gold investors, however, in the short term, we need more reason to beat a new higher high.
In the week ahead, Earning reports and Interest rate decisions from BOJ, BOC, and ECB are in the spotlight as well, while coronavirus headline also still matters, even though lockdown as how we saw in the first wave is not the option, but still can heat the markets.
Technical overview – H4 Chart
The technically Lower High and Lower Low in the chart in the past two trading days, with RSI at 50, signaling the correction at this level, however, price is still above the OBV trend line. $1794, the first support can be the signal of deeper prices, and first resistance at $1810 also can give more power to the bulls, but the first yellow metal needs to breathe the pivot point of $1803.
Pivot point: 1803.75
Resistance levels: 1810.00 / 1819.60
Support levels: 1794.20 / 1787.95
Today, the expected trading range is between 1787.95 support and 1810.00 resistance.
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