Gold , high in demand pending recession woes
Updated
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Interestingly, people are going for gold mainly because the retail shops are closed due to the Covid-19. Every country is in one way or another shutting down their city, imposing curfews and restricting movement. So, staying at home, they read the news, bombarded each day by more and more negative news about it. The mind starts to play tricks and they think what if it gets worse? Better to have some inflation hedge and naturally gold comes to mind.
On the weekly chart, it is still riding on a nice bullish trend. You can see that some early bears were trapped in the inner bullish trend line (dotted line) when they sold at 1539 level. It went down to 1455 and rebounded strongly to current price of 1627.
The 4H chart is showing some resistance at 1644 level which it needs to breakout before it can goes higher. It might pull back to around 1580 level before it goes higher.
Interestingly, people are going for gold mainly because the retail shops are closed due to the Covid-19. Every country is in one way or another shutting down their city, imposing curfews and restricting movement. So, staying at home, they read the news, bombarded each day by more and more negative news about it. The mind starts to play tricks and they think what if it gets worse? Better to have some inflation hedge and naturally gold comes to mind.
On the weekly chart, it is still riding on a nice bullish trend. You can see that some early bears were trapped in the inner bullish trend line (dotted line) when they sold at 1539 level. It went down to 1455 and rebounded strongly to current price of 1627.
The 4H chart is showing some resistance at 1644 level which it needs to breakout before it can goes higher. It might pull back to around 1580 level before it goes higher.
Note
Praise Lord. congrats to those who longedNote
How many of you still holding this position ? We have now surpassed the resistance line and moving on higher. Remember to take some partial profits.
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