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Daily market commentary: Gold price is rebounding



ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for April 30, 2020. This is not a trading advice. See details below:


FOREX

The euro gained almost 0.5% versus the dollar yesterday with that positive momentum continuing into Thursday for now at least. Market sentiment has improved this week, with more appetite for risk driven by news pointing at the progressive lifting of lockdown measures across the world, as well as a recovery in oil prices. The euro itself is being supported by expectation that later today the ECB will announce the expansion of its asset purchase program to include junk bonds.

Such a measure will be good news for the single currency as it will help alleviate the pressure on the borrowing costs for southern European countries at a time of growing tension between the member nations.

Ricardo Evangelista – Senior Analyst, ActivTrades

Daily Market analysis

GOLD

Gold price is rebounding and reaffirming the positive mood that followed yesterday’s Fed meeting. Investors remain confident about a relatively quick solution to coronavirus, although it is now abundantly clear that central banks will be forced to print a large amount of money.

From a technical point of view, in the middle of April the spot price of gold found a first important support base at $1,675, while the small decline of the last few days generated another support zone a bit higher, just below $1,700. A clear climb above the resistance placed at $1,730-$1,735, which has already been tested twice earlier this month, will create space for further rallies.

Carlo Alberto De Casa – Chief analyst, ActivTrades

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Daily market commentary: Gold price is rebounding

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