Gold Intraday: Narrowing Range
George Lam June 26, 2020 10:05 AM
Yesterday, the three major U.S. stock indices ended up more than 1%, lifted by the banking and financial sectors, while spot gold edged up 0.2%...
Yesterday, the three major U.S. stock indices ended up more than 1%, lifted by the banking and financial sectors, while spot gold edged up 0.2%.
The Federal Reserve released the results of its stress tests, stating: "The banking system has been a source of strength during this crisis, and the results of our sensitivity analyses show that our banks can remain strong in the face of even the harshest shocks."
Source: Trading Economics, Trading Central
The latest U.S. initial jobless calms data was rather neutral to gold prices. The number fell slightly to 1.48 million in the week ended June 20 from 1.54 million in the prior week, but more than 1.32 million estimated. It was the second consecutive week of missing expectations, suggesting that the pace of recovery has been somewhat slowed down.
From an intraday point of view, the trading range of spot gold is narrowing as shown on the 1-hour chart. Nevertheless, it remains trading within a bullish channel, and in the shorter term, it is still supported by a rising trend line drawn from June 22. The level at $1,754 might be considered as the nearest intraday support, with the 1st and 2nd resistance likely to be located at $1,774 and $1,780. Alternatively, a break below $1,754 might trigger a pull-back to $1,747.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.