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Gold analysis – 23 March 2020
By: Ahura Chalki
- S&P futures losing more than 4%
- Indian and Singapore stock markets in free fall
- USD Index easing at the beginning of the week by 0.40% to 103
Gold currently trading at its pivot point, sitting at $1492. After volatility starting above $1508 and testing $1483, yellow metal sticks to its pivot point, waiting for more updates in the market.
Red futures and Stok markets in Asia remain more stress and fears, despite all central banks’ and governors’ acts. Infected numbers in the Europe, especially in Italy, now are more than its’ early origin in China, which is ended with quarantine, almost in all European countries.
Current monetary and dovish policies with pumping the liquidity in the market may solve the problems in a short time, however, how to make and control it, is the main question, which investors will take care of that for longer-term. Week ahead, long term investors and fund managers, will be looking at main and long term policies of central banks and decision-makers in the economic policies, especially in the developed countries.
Gold prices will depend on the level of trust and fears of the market, which seems like supporting the gold price in a short time, as long as we will have clearer idea of what damages exactly global economy getting from Covid-19.
Gold technical analysis
In the H1 chart, RSI and stochastic, at 50 and 45, both moving flat, supporting of side movement, while EMA crossing strategy just returned into positive mode. In the H4 chart, technical indicators have mixed-signal, with mostly positive interest. Candles in the H4 chart above the middle line of BB, Stochastic mainline crossing the signal line above at the signaling of return possibility. $1500 is the key and psychological resistance. Stable trading above this level can encourage the bulls, for next levels at $1517 and $1524.
Pivot point: 1492.17
Resistance levels: 1526.03 / 1549.60
Support levels: 1468.30 / 1434.45
Today, the expected trading range is between 1468.30 support and 1526.03 resistance.
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