Gold spot price is continuing its slow dance
Gold spot price is continuing its slow dance around the $1,800 mark, waiting for new market movers. Friday started with a new test to the support zone of $1,795, followed by a rebound to $1,800. The price is in a relatively thin lateral range between $1,790 and $1,818, but a break down or a break up from these levels would open space for bigger movement. While gold is in the current phase, volatility remains low.
Carlo Alberto De Casa – Chief analyst, ActivTrades
European markets opened mixed for the last trading session of the week as sentiment is weighed down by disappointing macro data from the two largest global economies, as well as by the recent fragility of the tech sector, which had been outperforming the rest of the market. The risk-off mood has been gaining ground following yesterday’s discouraging US unemployment figures, while tech shares led a decline on the S&P500 after Netflix disappointed investors with fewer new subscriptions than estimated. These new bearish drivers indicate investors may have overpriced a quick and sharp recovery, especially in the tech sector, which now looks increasingly less likely to happen according to the new macro and virus numbers. This cautious trading stance is set to continue today as investors will maintain focus towards corporate earnings, continuing next week with many significant European companies reporting results.
Pierre Veyret– Technical analyst, ActivTrades
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