Gold Closed a Choppy Year with Strong Gains
By Deya Hroob
Gold stabilized with
the continued losses of the dollar, heading to achieve the best annual
performance in a decade, affected by economic uncertainty and the distribution
of countries around the world huge incentives to reduce the impact of Corona on
their economies.
The precious metal has
gained 25% since the beginning of 2020, as central banks and governments around
the world have adopted economic stimulus measures, paving the way for higher
inflation and a decline in the value of currencies
And gold, which is
considered a hedge against inflation this year, benefited from unprecedented
stimulus measures and lower interest rates to cushion the impact of the blow to
economies from the pandemic.
GOLD Technical Analysis
Daily
Chart :
Gold is trading inside a
descending channel. It's now on the
resistance line of the channel. A break above the channel and the $1900
resistance could start a new uptrend that could reach $1960 then to the
psychological resistance level at $2000
However, if the price
turns down from the current levels or the resistance line of the channel the
first support will be 50-day EMA, then
the bears will try to drag the precious metal to the 200-day EMA support ( now at $1812)
4H
Chart :
GOLD has been facing
resistance near the $1900 level for the past few days.
It's also trading in a rising wedge.
If the bulls can push and sustain the price
above the resistance structure, GOLD may go the upper line of the rising wedge.
If price breaks up the rising wedge, $1960 will be the next resistance.
On the contrary, if price
fails to break this stiff resistance , GOLD may drop to $1870 , then 1812 is
expected.
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