Gold around 1900 on firm dollar and lack of clarity on stimulus!
"Confusion", "anxiety", "excitement", are just a few words depicting the market emotions and movement of yesterday. There has been a series of
updates which are contributing to the market volatility. Gold is hovering around the $1900 level amidst, a firm dollar and lack of agreement on the new Covid relief bill. Also IMF released their global growth forecast report, which showed a contraction of -4.4% v/s -5.2% in June, denting the appeal for safe haven. On other hand, expectation for a Covid19 vaccine took a backseat after Johnson & Johnson and Eli Lilly and Co. paused vaccine trials, limiting some losses for gold. Global finance leaders said the world economy had escaped a coronavirus-triggered collapse so far, but warned that failure to conquer the pandemic, maintain stimulus and tackle mounting debt among poor nations could crush fragile recovery. Market participants will continue to focus on these important updates, and it is advised that a cautious approach is maintained.
A $1,916 retest on the H4 today could be enough to spark buying, considering we’re coming from weekly support at $1,882. The H4 resistance at $1,941 serves as a logical upside target for longs, and somewhere fresh sellers may make a show, having noted the H4 and daily confluence.
Suggestion: BUY GOLD FROM 1904-05 SL BELOW 1880 TGT 1925 ELSE SELL BELOW 1875 TGT 1850 SL ABV 1885
updates which are contributing to the market volatility. Gold is hovering around the $1900 level amidst, a firm dollar and lack of agreement on the new Covid relief bill. Also IMF released their global growth forecast report, which showed a contraction of -4.4% v/s -5.2% in June, denting the appeal for safe haven. On other hand, expectation for a Covid19 vaccine took a backseat after Johnson & Johnson and Eli Lilly and Co. paused vaccine trials, limiting some losses for gold. Global finance leaders said the world economy had escaped a coronavirus-triggered collapse so far, but warned that failure to conquer the pandemic, maintain stimulus and tackle mounting debt among poor nations could crush fragile recovery. Market participants will continue to focus on these important updates, and it is advised that a cautious approach is maintained.
A $1,916 retest on the H4 today could be enough to spark buying, considering we’re coming from weekly support at $1,882. The H4 resistance at $1,941 serves as a logical upside target for longs, and somewhere fresh sellers may make a show, having noted the H4 and daily confluence.
Suggestion: BUY GOLD FROM 1904-05 SL BELOW 1880 TGT 1925 ELSE SELL BELOW 1875 TGT 1850 SL ABV 1885