Bottom line: Gold structure remain bearish until $1765 resistance holds. The yellow metal had raised through $1763 yesterday, threatening a bullish breakout.  A break below $1704 would be considered constructive for bears, going further.

Fundamental Outlook:

DAX had collapsed almost -7.0% early this month, along with its peers the Dow Jones and SPX500. The indice had collapsed from 12900 through 11600 before finding some support. Risk sentiment has whipsawed this month, with a day of rally followed by collapse the other day.

Bottom line: Fears of another wave of COVID-19 infections in the US and other countries remain high. A V-Shaped economic recovery might still be far from reality. Geo political tensions are rising amidst the border dispute between India and China, and trade war between US and China. Knowing how fragile the markets remain, a dramatic bearish reversal cannot be ruled out.

Gold prices rallied through $1763.00 yesterday, threatening to break above $1765 highs. The metal may gain further if US Dollar continues to drop (DXY had dropped nearly -0.70% yesterday). WTI Crude trades above $40.00/barrel amidst sustained demand post lock down.

Technical Analysis:

Gold rally yesterday could be seen as a test of $1765 resistance. The yellow metal trades around $1752 levels for now, and a break below $1704 support would confirm that a lower top is in place. Alternately, a break above $1765 would be short lived and a potential bull trap.

Gold has been in a corrective mode since $1920 highs in 2011. The yellow metal is required to drop below $1046, the December 2015 lows, to complete the structure. We are expecting for the last leg to resume lower from current levels ($1750/52).

It remains to be seen if bears are able to print below $1704 support to confirm a potential reversal. Aggressive traders might remain short with protective stop above $1765 and potential target below $1660 and further.

Prepared by

Harsh Japee, Technical Analyst.

Gold Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。