ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for January 3, 2020. This is not a trading advice. See details below:
GOLD
The tension between the US and Iran is lifting gold, with the price close to the six-and-a-half year peak reached in September. The bullish scenario of the last few days has now accelerated as investors head for haven assets. From a technical point of view, prices will find a solid resistance area between $1,550/oz and $1,555/oz, where we expect profit-taking stops to be placed. If gold breaks through this resistance, there is space for further recoveries.
Carlo Alberto De Casa – Chief analyst, ActivTrades
OIL
Oil’s reaction to the US attack on Iran is not a big surprise. The price is spiking with WTI skyrocketing above $63/bbl as investors rush to buy and store oil. The outlook for oil is very bullish with this latest geopolitical tension putting the supply side at risk. Other supporting factors reasons include cuts by OPEC+ last month, solid macroeconomic data from the US and reduced tensions between the US and China, which could support oil demand in the medium term.
Carlo Alberto De Casa – Chief analyst, ActivTrades