Protected havens began the yr on a bullish footing and so they picked up additional tempo in Q1, because the coronavirus broke out, first in China
Protected havens began the yr on a bullish footing and so they picked up additional tempo in Q1, because the coronavirus broke out, first in China after which in Europe. The bullish momentum continued in Q2 as effectively, because the world economic system went by means of a flash recession because of the lock-downs throughout March and April.
The bullish momentum continued till the primary week of August, however as the worldwide economic system was rebounding, the sentiment improved, sending protected havens decrease. In consequence, GOLD reversed down and retreated decrease till the tip of November.
The descending development line can also be including to the resistance
Through the uptrend, shifting averages had been offering assist on the each day chart, pushing gold greater. Now, they’re working as assist once more, though as an alternative of pushing greater, they’re holding the worth on pullbacks and stalling the decline for some time.
The 50 SMA (yellow) was holding as assist throughout August, and when that shifting common was damaged, the 100 SMA (inexperienced) took its flip. The 100 SMA was damaged when the information of the coronavirus vaccine got here out after US presidential elections, though the 200 SMA (purple) got here into play once more, after offering assist through the huge crash in March.
The worth bounced off that shifting common, and after offering resistance for a while, the 50 SMA was damaged to the upside. However, the 100 SMA has changed into resistance now. This shifting common has been offering resistance for the final two weeks, and Gold is closing 2020 proper at this shifting common, at $ 1,895.
The descending development line comes proper there as effectively, so this is a vital degree. If gold fails right here, we would see some bearish momentum at first of 2021, and if consumers push above this degree, the bigger bullish development may some into play once more.