Gold Intraday: Even Stronger Momentum
George Lam July 21, 2020 10:31 PM
Yesterday, we mentioned that expansionary fiscal policy should continue to provide support to gold prices, now it has gathered more upside momentum...
On Tuesday, spot gold advanced 1.3% to $1,842, but seemingly lagging as compared with a 7.0% rally in silver, which jumped 4.8% further during Asian trading hours today.
European Union leaders have finally reached an agreement on a 750 billion euros stimulus package, while another round of U.S. fiscal support is expected to be released this week, commodity prices were buoyed by optimism over increasing industrial and infrastructure demand. Yesterday, we mentioned that expansionary fiscal policy should continue to provide support to gold prices.
From a technical point of view, spot gold has gathered more upside momentum after breaking above a 2-week consolidation range as shown on the 1-hour chart. In fact, it has broken above its previous high without showing a bearish RSI divergence. Bullish investors might consider $1,838 as the nearest intraday support, which is also the 61.8% Fibonacci retracement level of the rally started from July 17. The 1st and 2nd resistances are likely to be located at $1,880 and $1.890 respectively. In an alternative scenario, a break below $1,838 might trigger a pull-back to test the next support at $1,830.
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.