An interesting rebound for gold
The pound is losing ground versus other major currencies during the early part of Tuesday’s trading session. Like a yo-yo, sterling ups and downs happen as negotiating posturing from the UK and the EU continues to alternate between promising and gloomy about a post-Brexit trade deal. Essentially, the markets appear to still be confident that there will be some form of agreement, judging by the current price of the pound in relation to other currencies. However, every time the outlook deteriorates, as both sides seem unable to avoid dabbling in hard-negotiating tactics, the markets price-in the increasing chances of no deal, only to then revert those losses as deadlines are extended and a more conciliatory tone is adopted.
Ricardo Evangelista – Senior Analyst, ActivTrades
We have seen an interesting rebound for gold in the last few hours, with the spot price bouncing up by $20 to get close – once again – to the resistance level of $1,850. A clear surpass of this barrier, could open space for further rebounds to $1,872-$1,875, while a next key level is placed at $1,900, which is the “post vaccine” high for gold. Interest on gold remains high, with a market that is trying to stabilize on these new levels.
Carlo Alberto De Casa – Chief analyst, ActivTrades
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