There’s been an increase in selling interest from fast money accounts lately, possibly due to risk sentiment and the US dollar, both of which are failing to buckle fully.
But even yesterday saw frail risk sentiment in equities after the comments from US President Trump, hinting at a renewed trade war with China, were unable to breathe new life into gold. Instead, gold investors are focusing on the economic enthusiasm spilling over to the relaxation in social distancing rules and businesses reopening around the word.
Based on price action alone this week, the market appears to be adopting a more neutral stance for the time being, with $1,720 and $1,740 expected to provide reasonably good resistance in the short term. Long term strategic buyers will adequately cover dips to $1675.
Overall, the long-term view remains in place. Still, with economic data likely to pivot more positive soon, many investors have taken to the sidelines and are waiting for better levels to engage.
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In this edition of “Charts of the Week”, we will have a look at precious metals where the short-term outlook has turned brighter, as well as Bitcoin which is going through a major sell-off right now, followed by Oil – which is finally on the move after days of consolidation – and two major currency pairs.