A rebound for the Gold
Technical analysis detractors would not have much to celebrate looking at the gold chart. Indeed, in the last few hours gold perfectly rebounded from the technical and graphical support placed at $1,677, drawing a very precise double bottom. The strong rebound, with a recovery of more than $50 in less than two days, confirmed that buyers are particularly active every time bullion’s price falls below $1,700. All this was of course helped by the fundamental side, where a slowdown of the greenback rally at the same time as yields eased, saw gold rebound to $1,730.
Carlo Alberto De Casa – Chief analyst, ActivTrades
It’s going to be a toneless day for stocks as many markets will remain shut until next Tuesday for Easter. Despite the uncertain start to this week’s trading, new record highs were registered yesterday by both US and EU markets, indicating investors’ risk appetite remains strong. In the US the bullish sentiment has largely been fuelled by renewed fiscal support and the Federal Reserve playing down inflation risk in the short- to mid-term. On the other side of the Atlantic, both the situation and market leverages are different, but they lead to the same bullish sentiment: investors keep on welcoming the strong monetary support brought by the ECB. Although today is likely to be quiet and directionless for most markets, investors will still keep an eye on the NFP release and the unemployment rate in the US which are expected to show a solid increase in job creations for March.
Pierre Veyret– Technical analyst, ActivTrades
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