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Gold price struggling at $1900 resistance

By: Invezz
Gold price struggling at $1900 resistance

The price of gold has weakened from $1911 below $1860 last trading week and the current price stands around $1891. Despite this, gold remains in a bull market as the COVID-19 pandemic continues to dominate the financial markets.

Fundamental analysis: US stimulus and the upcoming presidential elections are in focus for investors

According to some analysts, gold is still overbought and popular sentiment around this precious metal has grown greedy and euphoric. The price of this precious metal is currently below $1900 level but sentiment for gold remains bullish over the long-run.

The weakness in the U.S. dollar and low U.S. treasury yields could help this precious metal to advance again above $1900 but investors trading gold should be a little more careful. Risk aversion will likely prevail in the upcoming days which is positive for the price of gold.

Gold is considered a safe-haven asset and the price of gold has advanced in the wake of the coronavirus crisis as investors look for safer places to invest their money. COVID-19 cases in the US continue to rise while Europe is not faring any better with this pandemic.

This is certainly not good for the economy but this could add another push to the price of gold. Gold price is expected to continue to be supported and could actually accelerate to the upside this November if the dollar continues to weaken.

Technical analysis: Bulls are focused on breaking the resistance level at $1900Data source: tradingview.com

The current resistance levels are $1900, $1950 and $2000, $1850 and $1 800 represent the current support levels. If the price jumps above $1900 it would be a signal to buy gold and we have the open way to $1950.

Rising above $2000 supports the continuation of the bullish trend and the next price target could be located around $2200. On the other side, if the price falls below $1850 it would be a “sell” signal and we have the open way to $1800.

Summary

Gold price is still supported by uncertainty over the global economic future and safe-haven assets typically perform well during downturns and financial crises. The pandemic pushed U.S. hospitals to the brink of capacity as coronavirus cases surpassed 9 million and concerns amid the ongoing pandemic continue to dominate the financial markets. The attention of investors is focused currently on the US stimulus aid package negotiations and the upcoming presidential elections. If the price jumps above $1900 it would be a signal to buy gold and we have the open way to $1950.

The post Gold price struggling at $1900 resistance appeared first on Invezz.

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