Source: PaxForex Premium Analytics Portal, Technical Insight

In April, global central banks bought 31.6 tons of gold to replenish the gold reserves, the World Gold Council (WGC) estimated. This is 24% less than a month earlier and 35% less than in April last year, but still relatively close to the average monthly volumes for the last half of the year (34.7 tons). The slowdown in purchases was quite expected, WGC notes, given how actively central banks were buying gold in 2018-2019. 

GOLD/USD, 30 min

Pivot: 1689.79

Analysis:

Provided that the price is below 1701.00, please follow these recommendations:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 1689.79
• Take Profit 1: 1676.00
• Take Profit 2: 1688.00

Alternative scenario:

In case of breakout of the level 1701.00 and the consolidation of the price above this level, follow the recommendations below:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 1701.00
• Take Profit 1: 1712.00
• Take Profit 2: 1722.00

Comment:

RSI shows the possibility of a downtrend.

Key levels:

GOLD/USD, D1

Pivot: 1680.00

Analysis:

As long as the price is below 1745.00, please follow these recommendations:

• Time frame: D1
• Recommendation: long position
• Entry point: 1680.00
• Take Profit 1: 1610.00
• Take Profit 2: 1575.00

Alternative scenario:

In case of breakout of the level 1745.00 follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1745.00
• Take Profit 1: 1765.00
• Take Profit 2: 1795.00

Comment:

RSI shows a downtrend in the medium term. 

Key levels: