Weaker currencies and bullish Gold!

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Gold analysis – 7 April 2020

By: Ahura Chalki

As new infected numbers lowered in most European countries as well as in the States, – especially in New York, where has more than 30% of cases and dead numbers in the US by itself alone – US main indices gained more than 7% and Asian markets also kept gaining that for the second day.

Unlike any other normal situation, Gold kept moving in the same direction as stocks, since we are passing through a very special situation. The government’s stimulating, helps the stock market to have better conditions, but it does not mean all trusts are back into the market, and it is a good time to reinvest, so invest can go to safer assets, like Gold. On the other hand, most of the monetary policies and lower rates, help the currencies to lose the rate, which it means carrying the currency by itself also is not the option for many others, which again sends the cash into the Gold market for now and it can continue as long as the market is not disappointed so badly and see the Light at the end of the tunnel!

XAUUSD Technical overview – H1.

CCI returned from 200, moves under 0 line, signaling of more correction at the moment, however, and price is still above the OBV trend line remains of more bullish in the bigger picture. Market volume at 4, a bit better than previous days, however still so low, which helps the market to have big moves in either way. Heiken Ashi candles are red for all Asian season and still supporting lower prices either if it will be just a correction or price return. RSI is positive at 63, but Parabolic SAR puts its dots above the candles, supporting the bears.

Pivot point: 1648.50

Resistance levels: 1668.50 / 1708.53

Support levels: 1628.54 / 1588.45

Today, the expected trading range is between 1628.54 support and 1668.50 resistance.


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