Gold Intraday: Gathering More Upside Momentum
George Lam July 7, 2020 9:45 PM
On Tuesday, spot gold advanced 0.6% to an 8-year high of $1,794.8, as investors are turning their focus on the resurgence of coronavirus.
On Tuesday, spot gold advanced 0.6% to an 8-year high of $1,794.8. The impacts of vaccine progress last week on gold prices proven to be short-lived, and investors are turning their focus on the resurgence of coronavirus cases.
Federal Reserve Bank of Atlanta President Raphael Bostic said the coronavirus impacts might go on longer than they had expected, and they need to be mindful of a lack of confidence among consumers and businesses. On the other hand, Fed Vice Chairman Richard Clarida said there is more that the Fed can do if necessary.
From an intraday point of view, spot gold is gathering more upside momentum as shown on the 1-hour chart. It stays on the upside after breaking above a symmetrical triangle, while the longer-term bullish channel is still intact. Bullish investors might consider $1,783 as the nearest support, with prices likely to test the 1st and 2nd resistance at $1,807 and $1,819 respectively. Alternatively, a break below $1,783 might trigger a pull-back to the next support at $1,774.
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.