Despite a strong US dollar, gold is steady at $1,730 as the bearish pressure seen in the last few weeks looks to be waning. Fears over inflation have receded for the time being while any tapering won’t happen any time soon, both of which are positive for gold. From a technical perspective, the medium term remains negative but the pressure from sellers is slowing down. The first support zones are placed at $1,700, followed by a Maginot Line at $1,675 on the low reached earlier this month. In the event of further recoveries, we will have a positive signal with a clear climb above the resistance zone of $1,745-$1,750.
Carlo Alberto De Casa – Chief analyst, ActivTrades
European markets extended yesterday’s losses by opening lower on Wednesday, amid a lingering risk-off mood. Jerome Powell attempts to play down the threat of unwanted inflation wasn’t enough to sustain investors’ appetite for riskier assets while renewed lockdowns in Europe amid spiking infections continue to pressure stocks. However, even if cyclical and energy values are the worst affected sectors this week, rising prices on tech stocks suggest investors may be rebalancing their exposure to more “defensive” assets, rather than selling short stock markets as a whole and increase their exposure to safer havens like precious metals or bonds. All eyes are likely to be on energy shares today as, despite the current bearish trading stance, volatility is likely to increase this afternoon as traders await for the latest US crude oil inventories data.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
