Earning season and negative rates!

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Gold analysis – 14 April 2020

By: Ahura Chalki

Gold kept raising ahead of earnings season, which started from this week, with Bank’s reports.

There are two main reasons for gold that could attract the funds to itself. As earning season starts, the volatility market is expecting in the stocks, and investors looking for safer havens. On the other hand banking rates are around zero, and it makes lower interest for bonds and other kinds of banking investments, so, money flows somewhere, which can give better profit, while it is safe as well, so, what can be better than gold?

In the economic calendar, we had Chinese trade balance earlier today, which was better than expected numbers, signaling the industry and manufacturing can return to normal environment faster than we thought, and if we see that in the US, how Mr. Trump admitted, then it can stop or ease the bulls of Gold.

Gold technical overview – H1

Heiken Ashi candles forming the second clear bearish candle, while CCI easing under zero line (at -35), but still above OBV trend line and RSI at 61, showing the bears have very hard work to prove themselves. $1704 is the strong support level, and trading above this level can support the bulls while breaching this level with confirmation of $1692, which can send the price deeper.

Pivot point: 1706.58

Resistance levels: 1734.10 / 1749.54

Support levels: 1691.14 / 1663.62

Today, the expected trading range is between 1691.14 Support and 1734.10 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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