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Gold and its Outlook before J.H.
By: Ahura Chalki
Gold creating a movement range between $1930 and $1950, looking after a strong reason to decide where to go.
Published data during last week, kept the hopes alive on continuing the V shape recovery, especially after that the US stock markets hit the new records high, however, deeply details show that all are thanks to big tech companies and it is not what the real deep in the market, the reason, which stopped the downtrend at this level.
On the other hand, continuing to raising the new cases all around the globe, infecting with Corona Virus, still forces us to understand that without an effective vaccine, it’s a long way to come up with normal life, especially when the University of Hong Kong (HKU)’s a report of the world’s first case of COVID-19 reinfection, with a man in his 30s re-infected with the virus almost five months after his initial infection (Reuters) market sentiment does not feel stable.
Meanwhile, for this week, the market will be focus on Thursday’s Jackson Hole symposium, where U.S. FED Chairman, Mr., Powell is widely expected to give us better expectations of the US economy and the direction of the FED monetary policy. Especially while House and Government could not come to the final point for the latest AID package and it’s now expected to hear something from FED.
And finally, As mentioned above, Gold needs a stronger reason for investors to be able to trust the market and move their assets to some other market than Safe-Havens, otherwise, we have to get used to seeing gold at these prices.
Gold in the H4 chart moving in its created range and under Main EMA lines, while RSI is at 42 and price moved under the OBV trend line. In the Daily chart, price is under 20 DMA, but above 50 DMA, which sits at $1884 as strong support at the moment. OBV trend line is flat and RSI at 50, confirms that it is a very important level for Gold, while technical indicators mostly supporting more bearish.
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