FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
63,197,791Confirmed
1,467,485Deaths
43,694,028Recovered
Fetching Location Data…
Advertisement
Advertisement
David Becker

 

Gold prices edged higher but remain rangebound. The US dollar moved higher along with US long-term yields but this did not impact the movement of the yellow metal. Gold implied volatility eased after rallying slightly on Thursday. JP Morgan is now forecasting that US growth will contract in the Q1 of 2021, as the virus continues to spread.

Trade gold with FXTM

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 edged higher but ran into resistance near the 10-day moving average at 1,875. For the week prices declined by 0.84%. Support is seen near the October lows at 1,850. Short-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The current reading on the fast stochastic is 17, below the oversold trigger level of 20, which could foreshadow a correction. Medium-term momentum is neutral to negative as the MACD (moving average convergence divergence) histogram prints in the red with a declining trajectory which points to consolidation.

Advertisement

JP Morgan Sees Economic Contraction

JPMorgan economists appear to be the first of the major banks to forecast that the Q1 will contract due to the spreading coronavirus. Most of the Wall Street Banks still forecast that the US economy will expand in the Q1. JP Morgan project that the Q1 will contract by 1% after growth of 2.8% in the Q4. For the Q2, they see the economy rallying and growth of 4.5% followed by a robust 6.5% in Q3.

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

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US