Gold and week ahead!


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Gold analysis – 20 April

By: Ahura Chalki

Gold ended last week at its lowest rate of the week with bearish trend, while earlier on last Tuesday, yellow metal with increasing the risk in the market, tried its eight-year high.

Today Gold started a trading week with keeping its bearish mode, testing the $1671 low, however, Japanese lower export rate with the biggest decline since 2016 and later Chinese rate cut to 3.855, from its previous of 4.05%, helped the gold, to regain all its losses and back above $1681.

For the week ahead, headlines from COVID-19 still are important while investors are looking at reopening the industries and economic activities in the US and Europe, as well as earning reports, which this the report of giant companies like Netflix, Amazon, and Tesla are scheduled. Also, we are expecting that in the week ahead, the market to react the economic data since they will show the reports of the period, which already has been effected with lockdowns and are closer to reality.

At the end of the day, gold, despite short term bearish mode, still in a longer-term keeps its bid, as current recessions take a time to be recovered, since economic and government real problem, will start after COVID-19 epidemic has been gone, to find a way and fully recover the economies.

Gold technical overview – Daily chart

Heiken Ashi candles, forming its third bearish candle, after the last bigger down move, heading towards the middle line of BB at $1650, while Parabolic SAR just started forming its dots above the candle, however OBV trend line still positive and RSI is flat at 56 supporting the bulls. 20 DMA at $1647 is the key support, and the recent 7 years high at $1704 is the key resistance, which breaching of breathing under and above these levels, can lead the market to the next targets.

Pivot points: 1690.95

Resistance levels: 1702.67 / 1729.61

Support levels: 1664.00 / 1652.00

Today, the expected trading range is between 1664 support and 1702.67 resistance.

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