Gold remains stuck in a lateral trading range
Gold remains stuck in a lateral trading range around $1,730, waiting for a clear direction as traders remain uncertain about the next step for bullion. Indeed, there is a mix of factors which could move gold in both directions. Bullish theories are supported by the huge liquidity injected into the system by central banks in the last few months, while uncertainty remains just around the corner with any significant correction of stocks likely to trigger a fresh rally for bullion. On the flip side, “inflation” and “tapering” are the two main words worrying the gold market.
Carlo Alberto De Casa – Chief analyst, ActivTrades
Stocks managed to edge slightly higher in Europe on Thursday, despite a bearish opening amid lingering macro uncertainty. Inflation worries, virus spikes and political tensions continue to pressure market sentiment this week while bullish investors increasingly struggle to find positive catalysts. Most stock traders are now trying to identify shares and sectors with the most potential and/or resilience to the current uncertain climate, meaning the current sector rotation may not be over yet. Today may bring more clarity with the looming release of important macro data including US Q4 GDP and initial jobless claims.
Pierre Veyret– Technical analyst, ActivTrades
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