XAUUSD, H4
Gold started the week with a new record high, very close to the historical level of $2,000. Gold hit $1,986 in the early hours of the Asian market, but after Japan’s gross domestic product remained unchanged at negative 2.2% (YoY) and outperformed forecasts of a 4.1% decline, while the Purchasing Managers’ Index fell and Chinese production was also better than expected at 52.8, Gold lost some of its value despite coronavirus fears . It is currently trading in the $1,973 range.
For the coming week, it could be a very volatile time for the Gold price, with NFP data and US unemployment claims due on Thursday and Friday, along with interest rates from the RBA and BoE in addition to PMI data from all major economies. From a fundamental point of view, Gold is still supported by the global rise in new infection cases, the second wave of which is being seen in the European Union, China, Hong Kong and elsewhere, and of course the continuation of the first wave in the United States, Brazil, India and Australia. In addition, weak GDP data released last week from the EU, is making people think twice before spending their cash or investing it in safe havens.
Technical overview
Technically, the yellow metal is moving consolidating at highs in the daily charts , but this is not what can be seen in the H4 and H1 charts. In the H1 chart, Gold broke 20-hr MA at $1,974 and is moving towards 50-hr MA, at $1,967, the first support level today. Below that is $1962 20-hr MA on the H4 chart next to support while continuing the uptrend will take us to the first and key resistance at $2,000.
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Ahura Chalki
Market Analyst
Hot Forex
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