GOLD : Rebound as USD Falls
(Thu, 10 Sept 2020). S&P 500 index surged 2%, with 78% of the index components ending higher. Australia’s ASX 200 index may follow strong US leads, testing a psychological resistance at 6,000. Gold prices rebounded from a key support level at US$ 1,910; MACD signals a “Bullish Reversal”
A weakening US Dollar and improving market sentiment is propelling gold prices, which climbed to US$ 1,947 at Asia open. We observed that gold’s safe-haven status is fading nowadays and it occasionally exhibited positive correlation with risk assets.
Technically, Gold prices have rebounded from a key support level at US$ 1,910. Its daily price has formed a “Descending Triangle” , which is a consolidating pattern. The MACD indicator, however, has likely stabilized and posit for a potential “Bullish Reversal” – selling pressure seems to be depleting and the momentum is leaning upwards.
GFS ASIA TEAM
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