January 20, 2020 | SQUARED DIRECT – Gold price traded slightly higher despite US stock markets ending the week on record highs as strong U.S. economic data and signs of resilience in the Chinese economy raised hopes of a rebound in global growth, fueling investors’ appetite for riskier assets.
Aggressive speculative buying seems to be keeping the yellow metal supported, as speculators place bets that an overbought stock market will eventually come crashing down while hedging potential troubles in the U.S China trade deal going forward. Expecting a low volume trading day as the U.S markets are closed for Martin Luther King day.
Gold Price Technical Analysis
The price of gold continues to trade in an intermediate uptrend, supported by the 20, 50 and 200 period SMA, as it finds resistance at 1562.01. An hourly close above that level will open the door for further upside with 1570 as an
intermediary line in the sand. While a close below 1552, will have gold prices retrace lower with 1554.70 as the closest support target.
- Support: 1544.70/ 1524.90 / 1516.13
- Resistance: 1562.01 / 1580.29 / 1599.07
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