FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks

Gold prices moved lower as it has become viewed as a riskier asset during the most recent sell-off.  The dollar moved higher and benefited from the risk-off trade, as US treasury yields broke down below support near the 50-day moving average. As the spread of COVID-19 makes its way through the US and Europe, riskier assets have been sold. Volatility is also perking up. The GVZ which trades on the COBE and measures the “at the money” implied volatility on Gold, rose 7% to 22%.

Trade gold with FXTM

Advertisement
Know where Gold is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:30 Churchill Place, London, E14 5EU, UK

Min Deposit:$10

Visit Broker

82% of retail CFD accounts lose money

Technical analysis

Gold prices moved lower but remain rangebound. Prices are poised to test support is seen near the October lows at 1,872. Resistance is seen near the 10-day moving average at 1,904. Short-term momentum has whipsawed turning negative as the fast stochastic generated a crossover sell signal on the upper end of the neutral range. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line. The MACD histogram also generated a crossover sell signal. The index sliced through the zero-index line. The histogram has a negative trajectory that points to lower prices.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker