Gold analysis – 23 Jan 2020

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By: Ahura Chalki

EU & Trade war, investors looking seriously on that?

In the first two days of World Economic Forum annual meeting in Davos, probably nothing more worried European than Trump’s threat for 25% tariffs for European made cars. We could see the effect on the stock market as well, maybe with a bit delay, but its effect was clearly seen by red candles on boards. On the other hand, even though Chinese and American told that everything is under control and they had any possible action to prevent more outbreaks, still investors and traders can remember the “SARS” story of 2002-2003 and 27% raising in the Gold price. And at the end, add President Trump’s impeachment and the EU-UK tussle on Brexit! For these reasons, Gold had every excuse to raise, or at least defend itself from deeper prices, at least for now!

Gold Technical Analysis

Second attack on the key level of $1562 in the past two days, while in the H4 chart, the price moved above the trend line (Check the figure above) shows that price attempting to return into the bullish mode. Still, there is not enough reason to confirm, for that matter closing above $1568 can be a good reason. For now and in the short term, technical indicators remain more bullish.

Pivot point: 1553.08

Resistance levels: 1556.05 / 1562.22

Support levels: 1546.91 / 1543.94

Today, the expected trading range is between 1546.91 support and 1562.22 resistance.


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