Gold: Fear is Growing

Gold: Fear is Growing

2021-07-20 • Updated

What is happening?

On Monday, July 19th, gold traded lower as the rising numbers of coronavirus cases drove investors to move their savings into safe-haven assets such as the US dollar and Treasuries. This fact proves that gold is not being a safe-haven asset anymore. The price movement of the past few months suggests gold is being thought of as a risky investment despite the fact its holders do not get any interest or dividend.

At the beginning of the month, gold’s price was driven by concerns about inflation and Federal Reserves’ policy, but Monday’s early price action suggests this week’s movement will be driven by fears over risk.

Technical analyses

Daily chart

XAUUSDDaily.png

4H chart

XAUUSDH4.png

At the moment, the XAUUSD chart is forming a symmetrical triangle. The price is trading under the 200-period moving average between $1772 and $1830, which are 23.6 and 38.2 Fibonacci levels, respectively. On the RSI oscillator, the bullish hidden divergence has been formed, which means the rising trend is going to continue.

Short-term trades:

If the price breaks the 200-period moving average, it will head towards $1830 and $1850 price levels.

On the other hand, in case the price stays under the 200-period moving average it will drop to the bottom side of the triangle.

Long-term trades:

We suggest trading a break through the triangle lines. Breaking through the top line gives the target price of $1900, on the contrary, the price will be dropped at the $1772 price level.

TRADE NOW

Similar

Trade ideas for March 28 - April 1
Trade ideas for March 28 - April 1

Last week marked the consolidation for the most active assets of March 1-15 (which is oil and gold). But next week has a lot to show, be ready to take part!

September 20-25 Trade Ideas
September 20-25 Trade Ideas

US stock market corrects, gold recovers and the crypto market drops hard! Best trade opportunities during this week in the article! Let’s check the charts and set some goals! NASDAQ (US100) US100 index plunges as the US dollar strengthens…

Latest news

CONSUMPTION AND ITS INFLUENCE ON THE ECONOMY
CONSUMPTION AND ITS INFLUENCE ON THE ECONOMY

How to understand if an economy is accelerating or decelerating? What are the indicators that can guide us in this interpretation? One of the ways in which we can assess this situation is precisely the household consumption, which fundamentally refers to…

CREDIT CYCLES IN THE ECONOMY AND THE BRAZILIAN CASE
CREDIT CYCLES IN THE ECONOMY AND THE BRAZILIAN CASE

Credit cycles (or leverage cycles) represent moments in the economy of a country when families and companies get indebted, in order to invest or to spend in different segments, which ends up positively influencing the level of the general economic…

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera