Gold Tests $1,680 After Bouncing Off the 20 Daily SMA
The 20 daily SMA turned into support for Gold and now the price is heading for $1,700 after the bounce
The US economic calendar has been light today, with only the UK jobs report being released early in the European session. Although there are a number of central bankers speaking from around the globe along with the World Economic Outlook from the IMF. The mood in financial markets was negative initially, following in last week’s footsteps but it improved and the US dollar gave back some recent gains.
Commodities and commodity currencies are recovering while S&P 500 futures have pared losses and are higher on the day. Gold has been the biggest winner from all this, gaining around $20 as it climbed from $1,660 to $1,680 earlier today.
Gold Daily Chart – The 20 SMA Holds As Support
Gold heading for $1,700 and probably the 50 SMA above that
Gold should have turned bearish on risk sentiment improvement, but it has lost the safe haven status and is behaving like a risk asset. The larger picture is still dovish for risk assets, such as stock markets and commodity dollars, as the world economy heads into a recession.
The German government still expects a recession in 2023, with the GDP at -0.4% according to government sources. Now officials expect inflation at 8.0% in 2022 and at 7.0% in 2023 after gas price brake. But, let’s see if Gold can push above the $1,700 level, because the $1,680 level is being breached
Gold XAU Live Chart
Gold
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