⚡ Easily Trade – Apple, Microsoft, Tesla and Google Stocks – Open a FREE Account Here

april gold

An Epic Friday Sell-Off In April Gold Futures

Posted Friday, February 28, 2020 by
Shain Vernier • 1 min read

In most cases, Friday brings bids to the gold markets. That has not been true today, as bullion has taken a beating. Led by a mid-session $65+ plunge in April gold futures, investors have passed on the yellow metal as a hedging mechanism. However, pricing volatility is extreme and anything is possible by the closing bell.

$1600.0 Back In Play For April Gold Futures

U.S. stocks continue to trade with incredible ferocity. Going into late-day action, it appears as though the psychological barriers of 25,000 for the DJIA DOW and 3000.00 for the S&P 500 SPX are going to be the key numbers. For April gold, the $1600.0 threshold is an important technical area.

April Gold Futures (GC), Daily Chart
April Gold Futures (GC), Daily Chart

Aside from $1600.0, here are two levels to watch for the remainder of the session:

  • Resistance(1): Bollinger MP, 1602.1
  • Support(1): Daily SMA, 1576.0

Overview: This weekend is going to be one of the most important market breaks in modern history. Here are a few issues that are going to drive next Monday’s action:

  • Coronavirus: The NOVID-19 virus is making headlines on a near-hourly basis. Any breaking news that suggests the situation is intensifying will drive even more panic to next week’s markets.
  • FED: Be on the lookout for surprise FED announcements, specifically the calling of an emergency meeting. While not likely, a bold NOVID-19 development or two could prompt the FED to take action á la the 2008 financial crisis.
  • Democratic Primaries: Saturday features the South Carolina primary and Super Tuesday is on tap for early next week. In the event that Democratic-socialist candidate Bernie Sanders performs well, added pressure may hit U.S. equities and April gold futures.

While most weekends are dull on the markets, this one has blockbuster potential. Be sure to stay tuned to FX Leaders for the key news events ahead of Monday’s opening bell.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments