In the first week of April, the number of initial claims for unemployment benefits soared to a record high of 6.6 million, while non-agricultural employment fell by 700000, the first decline since September 2010. The Fed said the U.S. economy has fallen into recession, which helped gold hit the 1670 level. Gold ETF position continued to refresh three and a half years high.
Gold effectively broke out the 1600 key resistance level on Friday and closed at 1620. On Monday, it broke through 1645 resistance level and closed at 1660.
Gold Trading suggestion in this week
Fundamentals:
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The development of the novel coronavirus pneumonia is still uncertain. Unless there is good news in medical technology, or it will continue to have negative impact on the global economy.
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Affected by home isolation, the consumption demand of the global market has declined, the unemployment rate has increased, and the global economy is facing a serious situation. Recent data in the US has been poor, with investors’ demand for safe haven assets rising and demand for gold growing. All those would further support Gold price raising.
Technical analysis:
1 hour chart
With the gold price currently above the 1645 level, the market is still focused on sentiment and is expected to test the previous high of $1703, which is the highest since the end of 2012.
Trading suggestions:
Take Long positions at support point $1645, and target at $1700.