ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for March 18, 2020. This is not a trading advice. See details below:
Daily market commentary: Volatility remains the dominant scenario on markets, including gold
GOLD
Volatility remains the dominant scenario on markets with gold proving no exception. The price jumped to $1,550, before collapsing again below $1,500. In this phase, we are seeing a positive (direct) correlation between stock markets and gold, which should not be a big surprise as every time there is a market sharp fall, many traders are using gold as their cash machine in order to keep other positions open that are being hit by margin calls.
Technically, there is now an important support zone at $1,450, which was the low from two days ago and also the low reached in December, while $1,467 and $1,487 are closer (but less relevant) levels to be monitored.
Carlo Alberto De Casa – Chief analyst, ActivTrades
