In the last few hours volatility on gold has declined with the price recovering slightly. Bullion is trying to stabilize after the selloff earlier this week which pulled down the price from $1,900 to $1,855. Technically it is now clear that the threshold of $1,850-$1,855 represents the first important support level. A fall below this zone would denote further short-term weakness. Vice versa, on the upside, there is no real resistance until $1,900, although the area around $1,875-$1,880 is likely to be the first test for any recovery attempt.
We should also remember that Christmas is approaching and in the next few trading sessions liquidity will be lower than usual, which could generate some spikes in both directions. That said, gold remains on track to finish this strange year with a gain of more than 20%.
Carlo Alberto De Casa – Chief analyst, ActivTrades
European stocks edged slightly higher on Wednesday, boosted by easing UK-EU tensions, with transaction volumes falling as we get closer to the end of the year. Investors continue to drive stocks higher, aiming to offset and fill the bearish gap left open at the beginning of the week, while market sentiment has received a fresh boost from a resolution being found on the trade and transport impasse between France and the UK. In addition, investors seem to particularly appreciate the last effort being made by British and European negotiators on a “final push” for a Brexit deal. Even if no strong directional market movement is expected before 2021, the bullish scenario remains the most likely as bullish leverages remain stronger than bearish ones. Investors’ focus will be trained on the travel and leisure sector and energy shares with the EIA crude oil inventory report due later today. Moreover, US jobless claims, durables and personal income data from the US may also increase short-term market volatility.
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.