Gold Moves Higher Amid Recession Fears
- Commodity markets are under pressure today as traders are worried about the health of the global economy.
- Meanwhile, rising demand for safe-haven assets provides some support to gold markets.
- A move above $1850 will push gold towards the next resistance level at $1860.
Gold Gains Ground While Commodity Markets Remain Under Pressure
Gold has recently made another attempt to get to the test of the $1850 level amid recession fears. Meanwhile, the price of copper, which is sensitive to economic activity, has just moved to new lows. Copper prices touched the $5.00 level back in early March and have recently made an attempt to settle below $3.90.
Silver, which has a significant industrial component, is also under significant pressure today. The biggest move can be seen in the oil markets, as WTI oil is down by more than 6% today. This strong move indicates that markets are seriously worried about the slowdown of the global economic activity.
The current moves in copper, silver, and oil markets show that traders have started to bet on a serious slowdown of the world economy in the second half of this year. This slowdown may increase demand for safe-haven assets, which will be bullish for gold.
Gold Stays Close To The 20 EMA
Gold continues its attempts to move above the 20 EMA, which is located near the $1850 level. In case gold settles above the 20 EMA, it will head towards the next resistance level at the 50 EMA at $1860.
A move above the 50 EMA will open the way to the test of the resistance at $1880. In case gold manages to settle above this level, it will head towards the resistance at $1900.
On the support side, the nearest support level for gold is located at $1830. This support level has been tested during the current trading session and proved its strength.
If gold settles below $1830, it will move towards the support at $1815. A successful test of the support at $1815 will push gold towards the next support at $1805.
For a look at all of today’s economic events, check out our economic calendar.