Market Analysis

The gold took some hit


During early Friday trading the US dollar continued to shed some of the gains from earlier in the week, as one Fed official after another dismisses the threat posed by inflation as nothing more than a temporary supply and demand issue, that should not distract from the need to maintain accommodative policies to support the economic recovery. Investors appear to be listening and the initial reaction to Wednesday’s publication of higher-than-expected US CPI numbers is now fizzling out, with bond yields stabilizing and the greenback giving up some of its gains as the markets buy into the idea echoed by the Fed as well as other central bankers that any inflation surges won’t last.

Ricardo Evangelista – Senior analyst, ActivTrades

Source: ActivTrader




Gold was moderately hit by the turmoil seen on the markets in the last few days as inflation fears and rising US yields pulled down bullion, along with the dollar’s recovery attempt. The scenario has now changed, with the market back in green and a new rebound of bullion. Technically, the decline found solid support at $1,810 with the price bouncing back to $1,830 with the overall outlook turning positive. A clear surpass of the resistance zone at $1,840-$1,842 would open space for further recoveries, with a potential target of $1,870.


Still on precious metals, palladium was hit more strongly by the correction, with the price falling to the support zone at $2,800. Palladium has now recovered to $2,910, albeit with a more fragile short-term technical scenario than the one for gold. Despite this, if we zoom out to the weekly chart, we are still in a clear bullish trajectory, thanks to the heavy buying of the last few weeks driven by deficit production fears. Strong resistance at the psychological level of $3,000 could curb the price skyrocketing.

Carlo Alberto De Casa– Chief analyst, ActivTrades


All information has been prepared by ActivTrades (“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.