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Gold analysis – 27 March 2020
By: Ahura Chalki
Gold, today traded mostly in the negative zone, losing the rate by 0.80% as stock markets returned to the positive area.
The market has a very special situation, for the third day in a row, the market volume is low, close to zero, confirming lower cash in the market and not enough new agreements, Not sell, not buy, however, latest economic stimulus provided by FED, changed the hope in the market to help the stock to gain for a second-day in a row. The hope is for a bit longer time, which means in a short time still concerns are around, so part of investors motivated to invest part of their cash in a Gold, waiting for better days to sell and get the stocks in better prices.
Today future trades in a negative zone, started after the US claim into the first place of having the infected number to the Covid-19, more than china. The news, how it is pushing the stock markets, can push the Gold price lower as well, with lifting the fears more than before.
Gold price for today will follow the Covid-19 headlines from the US, the lower concern will push the market price higher, while higher concern and no concern, both can give the bears more power.
Gold technical analysis:
In the H1 chart, technical indicators have mixed signals. Lower market volume, supporting the near future decline, while Stochastic and RSI, both have side movement signs and EMA crossing strategy supporting the bulls. 50 HMA at $1615 is the key support, trading above this level keeps the bulls on the power while breaching this level lower, will help the bears to take control of the market.
Pivot point: 1624.60
Resistance levels: 1653.66 / 1672.68
Support levels: 1605.58 / 1576.52
Today, the expected trading range is between 1576.52 support and 1653.6 resistance.
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