FXEMPIRE
All
Ad
Advertisement
Advertisement
David Becker
Add to Bookmarks

Gold prices rebounded slightly ahead of support levels as the dollar eased and US yields moved sideways. Gold prices were able to gain traction as riskier assets like stocks moved higher. The correlation between gold and stocks has been positive, as the dollar has been the safe-haven instrument that has gained traction during times of market turmoil.

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 higher and bounced at support near the 100-day moving average at 1,847. Resistance is seen near the 10-day moving average at 1,909. The 10-day moving average crossed through the 50-day moving average which means a short-term downtrend is in place. 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). Short-term momentum has turned positive as the fast stochastic recently generated a crossover buy signal. The current reading on the fast stochastic is 15, below the oversold trigger level of 20 which could foreshadow a correction.

Advertisement

Volatility has Been Elevated

The Cboe Volatility Index, a measure of expected swings in the S&P 500 as well as gold, climbed last week. The GVZ gold volatility index increased by slightly more than 9% last week Investors’ concerns about rising or elevated levels of coronavirus infections, the uneven pace of economic recovery, political risks and continued tensions between Beijing and Washington have increased the turbulence in the market this month.

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