Regulator : asic

Gold finally has a corrective move – but still clearly bullish

April 22, 2020 10:00

Gold Bar

Economic Events

Source: Economic Events April 22, 2020 - Admiral Markets' Forex Calendar

After Gold pushed above 1,700 USD for the first time since 2012, marking new yearly highs, the precious metal is now seeing a correction, even though the overall bullish picture hasn't substantially changed.

A potential technical driver for the current corrective move is the potential bearish divergence in the RSI(14) on the daily time-frame pointing which pointed to some diminishing bullish momentum and left the break to new highs already at an earlier time with a grain of salt in our opinion.

The first potential target can now be found around 1,650 USD, but looking at Gold from a purely technical perspective leaves us with a clearly bullish impression as long as we trade above 1,440/450 USD, a little shorter above 1,555 USD.

Fundamentally, in the short-term, a new wave of de-leveraging hitting global financial markets remains an option, mainly driven by the given global USD shortage, resulting in a new wave of aggressive selling in Gold due to liquidity reasons.

Mid- to long-term Gold stays bullish, especially given the massive monetary stimulus from the Fed over the last weeks with pumping its balance sheet to now over six trillion USD:

Gold Daily Chart

Source: Admiral Markets MT5 with MT5SE Add-on Gold Daily chart (between January 21, 2019, to April 21, 2020). Accessed: April 21, 2020, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.

In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.

Discover the world's #1 multi-asset platform

Admiral Markets offers professional traders the ability to trade with a custom, upgraded version of MetaTrader 5, allowing you to experience trading at a significantly higher, more rewarding level. Experience benefits such as the addition of the Market Heat Map, so you can compare various currency pairs to see which ones might be lucrative investments, access real-time trading data, and so much more. Click the banner below to start your FREE download of MT5 Supreme Edition!

Download MetaTrader 5 and begin trading today!

Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

  1. This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.
  3. Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter "Author") based on the Author's personal estimations.
  4. To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  5. Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.
  6. The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.
  7. Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  8. The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.
  9. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the risks.

Admiral Markets Group consists of the following firms:
Admiral Markets Pty Ltd
Regulated by the Australian Securities and Investments Commission (ASIC)
  • Leverage up to:
    1:500 for retail clients
  • Volatility protection
  • Negative Account Balance Policy
CONTINUE
Note: If you close this window without choosing a firm, you agree to proceed under the FCA (UK) regulation.
Note: If you close this window without choosing a firm, you agree to proceed under the FCA (UK) regulation.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.