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God analysis – 1 April 2020
By: Ahura Chalki
- Asian markets are trading in the Red!
- Futures continuing the News York decline!
- The big buyer may start selling!
Gold recovered from its multi-day low of $1570. Yesterday sell-off caused mostly for two reasons, first of all, lower cash in the market as traders much earlier cashed out with Gold to cover the margins in the other market and save the cash for unexpected coming days in lockdown, almost all over the world. On the other hand, “Reports that Russia, the world’s largest purchaser of bullion, decided to suspend gold purchases starting today were cited as a headwind for the yellow metal.” (Investing)
Totally Gold price was under pressure in recent weeks, despite unknown market situations seems like gave up its safe-haven bid to USD, as it is more trusted and useful at the moment. We expect that with longer lockdown, gold price to lose more, unless if markets buy the hopes, selling by the banks and governments about short term recession and faster recovery right after ending the lockdown in the next 3-4 weeks.
Gold technical analysis:
In the H4 chart, at the moment, gold trading at $1588, where 200 and 50 HMA sit on each other. Trading under $1588, which is key support, is the strong sign of bearish while recovery above $1609, the middle line of BB, can change the market tone to the positive.
Pivot point: 1585.70
Resistance levels: 1601.24 / 1635.60
Support levels: 1553.34 / 1539.80
Today, the expected trading range is between 1553.34 support and 1601.24 resistance.
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