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Gold analysis – 2 April 2020
By: Ahura Chalki
Gold yesterday kept its downtrend move up to $1573 in the EU season, after short recovery in the Asian season, however, it failed to hold it and recovered back above $1590, as Trump warned that they may have horrible two weeks to come.
Several recoveries from $1580 -$1590 since January 2020, can confirm this that this is the level, where investors making their decision to hold the yellow metal or have to go for more shorts.
Asian stocks kept losing and trading in the red, as the way we saw in past days, however, Shanghai after flat trading in the day before, today moved to the green zone, reacts to yesterday’s positive PMI data, realized from China. US futures also trading in the positive mode, ahead of today’s initial claim Job data from the US. From the data front, Gold supposed to wait a bit more for today’s and tomorrow’s US job and employment data to decide where to go.
On the other hand, “Centerra Gold (OTCPK: CAGDF) says it will significantly reduce its workforce and temporarily cut mill throughput to 50K metric tons/day at its Mount Milligan mine in British Columbia for two weeks starting April 6. The company also has closed its head office in Toronto and regional offices in Kyrgyz Republic, British Columbia, and Turkey, and has asked its workforce to operate remotely.” (Carl Surran, Seeking Alpha), which can help Gold’s bulls to keep their position, still.
Gold technical analysis:
$1582 and $1560 are key support levels, which breaching these levels, can change the direction, however trading above $1592, is a strong signal of holding the bullish move, especially if it confirms by $1606
Pivot point: 1587.07
Resistance levels: 1607.12 / 1619.70
Support levels: 1574.50 / 1554.44
Today, the expected trading range is between 1554.44 support and 1619.70 resistance.
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