Gold reached an all-time high earlier this week as it cleared the $1,750 level. It was able to reach bids at $1,765 before the US trading station started for the week. However, this rally was not sustainable as Risk on prevailed as Moderna reported positive data on early-stage coronavirus vaccine trial.
Gold retracted back down to $1,725 today as Risk on sentiment prevails in the market, most notably in the oil market. Both WTI and Brent Crude reach highs since the start of the coronavirus breaching $34 and $37, respectively, as demand for oil slowly picks up around the world. Both commodities have been susceptible to the Risk on / Risk off a dynamic that has been playing out in the markets recently. The SP500 has been stuck in a consolidation zone since the end of April, with Investors / Traders gripping onto any good news with regards to any advancements to Coronavirus vaccines.
Gold has been experiencing similar consolidation patterns as market sentiment shows genuine uncertainty with the future of the economy and global trade. This creates strong support and resistance lines within the consolidation zones that traders may trade with relative reliability. A breach of these supports and resistance may show strong positive/negative news with regards to Coronavirus vaccines. On quieter news days, traders may use these support and resistance lines for hourly and 4 hourly reversals.
However, fundamentally we may see a retest of the $1,750 level again as Tensions between the United States and Australia towards China increase. Furthermore, the possibility of a second wave is still not out of the question, and many more disappointing results with regards to Coronavirus trials are highly likely. However, CEO Pascal Soriot of AstraZeneca, a pharmaceutical company, stated that they are confident that there is a good reason for vaccine trials to work.
Are you bullish on Gold?
Gold retracted back down to $1,725 today as Risk on sentiment prevails in the market, most notably in the oil market. Both WTI and Brent Crude reach highs since the start of the coronavirus breaching $34 and $37, respectively, as demand for oil slowly picks up around the world. Both commodities have been susceptible to the Risk on / Risk off a dynamic that has been playing out in the markets recently. The SP500 has been stuck in a consolidation zone since the end of April, with Investors / Traders gripping onto any good news with regards to any advancements to Coronavirus vaccines.
Gold has been experiencing similar consolidation patterns as market sentiment shows genuine uncertainty with the future of the economy and global trade. This creates strong support and resistance lines within the consolidation zones that traders may trade with relative reliability. A breach of these supports and resistance may show strong positive/negative news with regards to Coronavirus vaccines. On quieter news days, traders may use these support and resistance lines for hourly and 4 hourly reversals.
However, fundamentally we may see a retest of the $1,750 level again as Tensions between the United States and Australia towards China increase. Furthermore, the possibility of a second wave is still not out of the question, and many more disappointing results with regards to Coronavirus trials are highly likely. However, CEO Pascal Soriot of AstraZeneca, a pharmaceutical company, stated that they are confident that there is a good reason for vaccine trials to work.
Are you bullish on Gold?
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