The 100% weekly Fibonacci retracement area - i.e. full retracement of all the US dollar’s gains in the first quarter of 2020 - has been a crucial support for some weeks now. However, it now appears that this zone could be broken. The relatively large real body of the current period moving below the 100%…
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GOLD Despite the new week starting with stock markets in red, gold has so far been unable to rebound. The short-term trend for bullion has been compromised by the price falling through the support level at $1,850. Investors have moved to other assets, seeking faster gains, although they haven’t forgotten that central banks will be…
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GOLD The breakdown of the support level of $1,850 has damaged the medium-term trend for gold, opening space for further correction. Positive news regarding Covid vaccines has pushed investors to bet on riskier assets, temporarily reducing their exposure to gold. With US markets working shorter hours today due to the Thanksgiving long weekend, there are…
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OIL There are two main drivers behind the oil price rally of the last few weeks. The first and main one is the positive vaccine developments. The second one is related to OPEC and OPEC+ meetings, as investors are expecting an extension of the current cuts, which seems already priced in by the markets. Is…
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GOLD The extended period of risk on finally hit gold with the price breaking the support level of $1,850 to plunge to the lowest level since July. This negative correlation with risk is nothing new for gold as investors are continuing to invest on riskier assets instead, betting on a quick solution to Covid-19. The…
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Price has regained the 61.8% area of the daily Fibonacci fan as the main medium-term downtrend has resumed since the first week of November. Momentum has understandably been somewhat weaker around the critically important psychological support at Mex$20. A clear break to the downside would signal continuation lower, but the slow stochastic (15, 5, 5)…
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OIL Stocks started the week in green in the early trading. In this still “risk on” scenario, the oil price is extending its gains. Investors are betting on the efficacy of the vaccine and with it, slowing numbers of coronavirus cases within a few months. These expectations – which of course will need to be…
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GOLD In the last few days a stream of positive updates about vaccines have pulled up stocks. The general risk on scenario hit the gold price, triggering a notable decline last week. Yesterday, bullion dropped a further 1% on the news of the increased percentage success of Pfizer’s vaccine. So far the price has managed…
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GOLD In the last few days we have seen a general decline in volatility, which has also been reflected on gold with the price steady at 1,880, waiting for new market drivers. We are seeing an interesting challenge between the risk on, which is still dominating markets and is a bearish element for gold, and…
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GOLD Gold is steady with no clear direction. The price has been affected by the general risk on scenario, which has boosted stock markets in the last few days. Investors are betting on riskier assets, reducing or at least not increasing their gold reserves. It is worth pointing out that bullion rebounded on the support…
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