Could the Yellow Metal Break the 1740 Resistance?
The yellow metal has been traded in a channel since the beginning of April. This channel is defined by two levels the 1671 and 1740 levels.
Last week, the Gold managed to break the 1740 mark after testing it two times.
Currently, it is not guaranteed that the price will continue its movement upward. A consolidation above the 1740 level is needed. If this scenario occurs, the Gold might reach $1773 as a price.
If the price failed to move upward next week, a false breakout might be left behind, and it will head to the 1671 level.
The yellow metal reached the highest level since 2012 due to macro events occurring around the world.
The tension between the United States and China reappeared, especially after President Trump stated that he might cut ties with Beijing.
According to the World Gold Council, the demand for this metal increased by 80% YOY in the first quarter.
The last factor that pushed the prices of Gold to the highest level is the US data released last week. On Thursday, there was the release of “Unemployment Claims” which indicated that 2.98 million Americans filed for unemployment.
2.5 million, a number higher than expected by analysts. Moreover, last Friday, Retail Sales came lower than expected with -16.4%, recording the most significant drop ever.
The pandemic crisis is being compared to the 2008 financial crisis when central banks did the impossible to prevent global collapse.
Are we on a similar track where we will see the Yellow Metal recording new highs? What are your thoughts on the price of Gold?