Date: 17 Apr 2020
The gold price is declining on the strength of the greenback and the spot price has fallen below $1,700 again. Bullion is challenging the strong bullish trendline of the last two weeks (see attached chart) and whether the price holds above this significant support or falls through it will be crucial in determining if gold will rebound or if we are close to a break down. Investors are celebrating, perhaps a little too early, the apparent effectiveness of the Gilead drug in treating coronavirus and speeding up patients’ recovery from it. In this scenario, they are seeing less need to increase the percentage of gold in their portfolio and are moving back to some more risk-on assets.
Carlo Alberto De Casa – Chief analyst, ActivTrades
Image Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.