No doubt the current pandemic has affected the market substantially especially for job losses and it’s still present, which should in turn lift the price of gold. However, the metal price has hit a fresh week-low to close 1715. This may be largely due to the strengthening dollar which directly reflects the price of gold. Also, the job losses curve was seen flattened suggesting employment rate is still on the low yet, may also be recovering as some states officially announced re-opening.

Amid those mentioned above, gold remains bias uptrend with several uncertainties. Stock markets has recently been rather unstable which logically should to drive investors to demand gold, as know for a safe-haven asset and pump its price. On the other hand, the tussle war between the U.S and China seemed to be on the rise again as President Trump showed his untrusty view on their counterpart, implying something may break-out between the two countries again.

It’s been floating between 1716 and 1753 level since the big drop early this week, failed to test-break the lower bound shown by the latest hours. RSI on the other side is also picking up from almost hitting oversold and kept the trend. Past record showed a stable continuous up-turn and didn’t fail to perform once up, I believe opportunities for buyers still remains.

Daily pivot 1748.51

S1 – 1742.76 R1 – 1754.72

S2 – 1736.55 R2 – 1760.47

S3 – 1724.59 R3 – 1772.43

Suggesting long at 1724.8 with stop loss 1709 and take profit 1740.

Analyzed by: Mr. Ronald Wu, Independent Analyst