Gold Intraday: Was it a False Break?
George Lam May 19, 2020 3:53 AM
Spot gold marked a day high near $1,765 before closing down 0.6% at $1,733 yesterday, still below its April high, suggesting that it might be a false upside breakout...
Spot gold marked a day high near $1,765 before closing down 0.6% at $1,733 yesterday, as coronavirus vaccine hopes dampened safe-haven demand. U.S. biotech firm Moderna announced positive results for a coronavirus vaccine trial, which could be a key turning point for the current health crisis.
As gold price closed still below its April high, it may suggest that yesterday's upside breakout might be a false one.
From a technical point of view, intraday spot gold is under pressure as show on the 1-hour chart. It retreated sharply after breaking above its previous high. Bearish investors might consider $1,752 as the nearest intraday resistance, which is the 61.8% Fibonacci retracement of the decline. The 1st and 2nd support are likely to be located at $1,728 and $1,717 respectively. In an alternative scenario, a break above $1,752 may trigger a revisit to the previous top at $1,765.
Source: TradingView, Gain Capital
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.