Gold Intraday: Upside Break-through Awaited?
George Lam June 21, 2020 10:22 PM
Spot gold advanced 1.2% on Friday and extended its rally to above $1,750 during Asian trading hours today, amid second coronavirus wave fears...
Spot gold advanced 1.2% on Friday and extended its rally to above $1,750 during Asian trading hours today. U.S. tech giant Apple announced temporarily closures of 11 stores in 4 states, after reopening a month ago, while China ordered to shut a Beijing Pepsi plant amid a new coronavirus cluster in the capital city.
Meanwhile, Goldman Sachs said it expects gold to reach $2,000 over the next 12 months, pointing out that "gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates".
From a technical point of view, spot gold is challenging the top of its bullish consolidation range as shown on the 4-hour chart. In the shorter term, it has broken above a symmetrical triangle, while the relative strength index has climbed to the 70s. Bullish investors might consider $1,733 as the nearest intraday support, while a break above the nearest resistance at $1,765 could open a path to the next resistance at $1,790. Alternatively, losing $1,733 would suggest a loss of momentum and trigger a pull-back to the next support at $1,717.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.