2020, what a year to be experiencing one of the most crazy periods of time in humanity. Alas the run up from the 1st of December 2015 has provided some ample trading signals and chart structure which I’ll intend on touching on. Covid has shaken the Gold market up and I’m not just talking about the charts, but physical. Here’s a brief overview on the current situation in 2020
Supply: With mining production falling 3% in quarter 1 this will go on to disrupt the rest of the year.
Central Banks: Remain net buyers of Gold with purchases up to 145 Tonnes / Russia suspense its gold purchases.
Technology: The electronics sector has seen a fall in demand dropping 7% since last year.
Jewellery: With rises prices due to cover saw this sector’s demand drop 39% with china (the largest jewellery market) experiencing 65% less demand.
Investment: Inflows into gold- backed ETFs surged with coin/bullion investment jumping. Note that western market up 36% verses 19% drop in Asia, china being 48% of that 19%. Collectively up 6%.
Thus this brings us to the charts:
Sitting high is gold . Price hasn’t seen these levels since September 2012. Let that sink in. Trend is and the bulls are pushing. Remember that precise and need to take a breath here and there and at this point a retracement is understandable. A break of support below will show weakness however there is blood still circulating within the price muscle. A break of the highs will then contend with 2011/12 ATH prices.
Currently price is settling at levels of the weeks from 2-5 days ago falling $10 however holding strong above the apex of the previous high before a downward move (9 March 2020). At present and stated in outer perspective market taking a breather. The Inner Lower Trend with 2 touches could see a retest in price.
Area of Interest
Price may test The lower and support at the zone around 1691, however we’ve been bouncing back and forth for nearly 20 days now. Keep an eye on the triangle for price to navigate these zones.
📈Support & Resistance📉*
1st Support Zone: 1691.46
2nd Support Zone: 1666.49
3rd Support Zone: 1627.26
1st Resistance Zone: 1730.21
2nd Resistance Zone: 1783.75
3rd Resistance Zone: 1814.26
Price Level Consideration
All Time High Half Way Point: 960.480
Prominent High: 1703.717
Prominent Low: 1043.409
🐃 Bulls Verse Bears 🐻
🐃 above: NOW
🐻 below: 1451.718
Monthly & Weekly Opens
Weekly Open: 1703.717
Comparative against Silver & Platinum