Gold Technical Analysis: Approaching $ 1,800 Level
After profit taking helped push the price of gold down to the $ 1,763 level, and amid pressure on the dollar, the price of gold rebounded higher today to resistance of $ 1788. At the start of this week’s trading, the price of gold jumped to the resistance level of $ 1,791. The bulls intend to move to the psychological resistance of $ 1800 which could increase buying which could then push gold to the resistance levels of $ 1822, $ 1845 and $ 1875. At the last two levels, technical indicators will move according to the performance of the daily chart towards strong levels of overbought.
On the other hand, bullish hopes could collapse if the bears move towards the support level of $ 1710.
Commenting on the performance of the price of gold, Adam Cause, chairman of Libertas Wealth Management Group, said that the price of gold has risen since hitting a double bottom on March 30, referring to the graphical pattern which indicates a possible upward reversal in prices. The analyst attributed the rise in gold since the end of March to the decline of the US dollar during the same period, as well as to the fall in interest rates, which have become a “very overbought area” and the “long-term” US stock market. , which is “due to decline”.
The yield on the 10-year US Treasury bill is down to around 1.56%. Lower yields on government debt could increase appetite for non-yielding precious metals. The weaker US dollar also contributed to gold’s gains.
Commenting on the price of gold, analysts at brokerage firm Zaner also wrote in a note on Tuesday: “Gold trading was not too focused on physical demand, with the market switching between rates instead. interest, currencies and deflationary issues. In the near term, gold is likely to be vulnerable to the threat of Indian demand and rising US interest rates, but it benefits from the weaker dollar and, perhaps to a lesser extent, of deflationary psychology. Gold is often seen as a hedge against inflation.
Analysts at the company also reported that China’s gold imports hit their highest level in 14 years. China has also announced that it will allow major banks and financial institutions to import large amounts of gold.
Movements in the precious metals market come amid renewed concerns about a resurgence of COVID-19 in parts of the world, including India, as the outbreak pushed the country to the second-highest infection rate. brought up to the world.
Chinese President Xi Jinping called for more equitable management of world affairs and, in an implicit rejection of US hegemony, said governments should not impose rules on others. Xi’s speech at an economic forum comes against a backdrop of growing tension with neighbors China and Washington over his strategic ambitions and demands for a greater role in trade and other policies.
Without mentioning the United States, Xi criticized “individual state unilateralism” and cautioned against secession, referring to fears that tensions between the United States and China over technology and security divides industries and markets into distinct, less productive zones with incompatible standards. “International affairs should be dealt with by all in consultation,” Xi said via a video link from the Boao Forum for Asia on the southern island of Hainan. “Rules made by one or more countries should not be imposed on others.”
Xi called for stronger cooperation in coronavirus vaccine research and measures to make them available to developing countries.
Xi’s comments reflected the ruling Communist Party’s desire for global influence to match China’s position as the second largest economy and frustration with what Party leaders see as US efforts to derail its ambitions. These sentiments are fueled by sanctions imposed by former President Donald Trump that deny access to U.S. processor chips and other technology for Chinese tech giant Huawei and some other companies.
Some of Xi’s statements contradicted Beijing’s increased military activity in the South China Sea and other areas, where his territorial claims contradicted those of Japan, the Philippines, India and India. other countries. Chinese military spending is the second largest after the United States. Beijing is working to develop ballistic missiles with nuclear capabilities, submarines, stealth fighters and other weapons to extend its military reach.
The annual Boao Forum, created in 2001, is inspired by the gathering of business leaders in Davos, Switzerland.