GOLD
Gold: double or quits? This proposition well represents the current situation for the yellow metal. Bullion just reached a new seven-month low at $1,760, before showing some rebound impulse to $1,775. We are now seeing an interesting challenge between the long term bullish trend and the short term bearish movement, which seems to be predominant in the current phase.
From a technical point of view, we are still in a negative mood and only a solid recovery above ,800 would calm the situation. Despite the rally of 2020, bullion is still in an unsafe positioyen as investors continue to bet on growing yields in the US and put money into stocks, hoping for quicker returns and profits. All this is also supported by expectations of a solid rebound of economies this year, mostly thanks to the roll-out of vaccine programmes and a decline of new Covid-19 cases.
Carlo Alberto De Casa – Chief analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
