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By: Ahura Chalki
Gold, losing the momentum!
Gold lost more than 1% in early trading hours of Asian season to touch 1655. At the same time, Asian markets mostly were positive, supporting the movement. Nikkei gained almost %0.5, while Hang Seng and Shanghai, both gained more than %1.5. US futures also followed the trend and after a horrible fall, gained back some of their loss. NASDAQ futures gained more than %4, S&P and Dow jones also both rose above %3.70.
Yesterday sell-off in the Gold market also came after that many of Gold sellers wanted to cover their margins, which lowered by free fall of stock markets, reacted the fears of virus spreading.
At the moment, fundamentally, even if the moving to safe havens, still popular, however, general weakness in the market, has its push and weight also on the Gold price.
Gold technical analysis:
Technical indicators from the second part of the day before returned into the negative zone, in the H1 chart. Candles between the middle and lower band of BB as well as lower than 50 HMA. EMA crossing strategy also supporting the bears at the moment, RSI also moves under 50. Key support sits at $1675, the 50 HMA and key resistance, at $1648, which the 200 HMA.
Pivot point: 1680.10
Resistance levels: 1702.90 / 1726.13
Support levels: 1655.90 / 1634.07
Today, the expected trading range is between 1634.07 support and 1702.90 resistance.
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