Gold Intraday: More Upside Potential
George Lam July 21, 2020 3:46 AM
On Monday, spot gold gained 0.4% to $1,817.7, the highest level since September 2011...
On Monday, AstraZeneca, Pfizer and BioNTech released promising phase 1/2 Covid-19 vaccine trial results and are progressing to larger trials. On the other hand, it is reported that U.S. Senate Majority Leader Mitch McConnell and House Minority Leader Kevin McCarthy met with President Donald Trump to discuss the Republican's proposed stimulus bill, which is expected to be released this week.
Spot gold gained 0.4% to $1,817.7, the highest level since September 2011. Despite the fact that vaccine's development should be negative to gold, commodity prices were lifted by expansionary fiscal policy, as spot silver jumped 3.0% to $19.90.
From a technical point of view, spot gold is gaining traction as shown on the 1-hour chart. Currently, it remains trading within a bullish channel drawn from mid-June and has broken above its recent consolidation range. Bullish investors might consider $1,804 as the nearest intraday support level, with prices trending test the next resistances at $1,826 and $1,835. Alternatively, a break below $1,804 might trigger a pull-back to the next support at $1,794.
StoneX Financial Ltd (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.