Gold: April 14 review
Gold prices reached to its highest level in more than seven years and traded $1784.50 range (almost $1800 range) at morning Asian sessions.
Many factors impact the Gold prices at this type of corona-virus pandemic will have a devastating effect on the global economy, hammering corporate earnings while supercharging demand for havens.
The major impact for this Gold rally is that many Central banks around the world have cut rates aggressively, given major positive sign for Gold.
On the other side, at this type of situations US dollar and Gold traded same direction instead of opposite side. Prices of Gold and Silver rise more than 13% and 15% respectively in this month.
According to my view, Gold and Silver prices continue rise for the first two week of this months, expectation of major profit booking in precious metals like Gold and Silver today on wards.
You can see more than 1% price difference between Spot Gold and Gold June contract. Its mainly due to demand rises in precious metals.
For my point of view, the next area for attention is below $1745.00 range and keeps down trend till $1665.00. And on the upside, I am looking at $1800+ range but for trading point of view short precious metals at every high level. And see more than 5-7% down trend in next few sessions.
Intraday and weekly strategy for Gold is given below.
Entry point – $1784.50 – $1788.00 range
And keep R1 $1805.00
And wait S1 $1745.00
And wait S2 $1705.00
And wait S3 $1665.00