Source: PaxForex Premium Analytics Portal, Technical Insight

The global demand for gold in April-June 2020 reduced by 11% (year to year), to 1.016 thousand tons, the World Gold Council (WGC) has calculated. With this in mind, at the end of the half-year, the demand decreased by 6% and amounted to 2.076 thousand tons. The main factor affecting the gold market in the 2nd quarter was the COVID-19 pandemic, explains WGC. Against this background, consumer demand fell sharply. On the other hand, it also supported investment demand. The response of central banks and authorities to the pandemic, which resulted in lower interest rates and massive liquidity injections, led to record inflows into gold ETFs - 734 tons at half year-end. It provoked an increase in gold prices, which jumped by 17% in the first half of the year.

GOLD/USD, 30 min

Pivot: 1967.02

Analysis:

Provided that the price is above 1954.00, please follow these recommendations:

• Time frame: 30 min
• Recommendation: long position
• Entry point: 1967.02
• Take Profit 1: 1981.00
• Take Profit 2: 1990.00

Alternative scenario:

In case of breakdown of the level 1954.00 and the consolidation of the price below this level, follow the recommendations below:

• Time frame: 30 min
• Recommendation: short position
• Entry point: 1954.00
• Take Profit 1: 1946.00
• Take Profit 2: 1938.50

Comment:

RSI shows the possibility of an ascending momentum.

Key levels:

GOLD/USD, D1

Pivot: 1960.00

Analysis:

As long as the price is above 1900.00, please follow these recommendations:

• Time frame: D1
• Recommendation: long position
• Entry point: 1960.00
• Take Profit 1: 2000.00
• Take Profit 2: 2040.00

Alternative scenario:

In case of breakdown of the level 1900.00 follow the recommendations below:

• Time frame: D1
• Recommendation: short position
• Entry point: 1900.00
• Take Profit 1: 1865.00
• Take Profit 2: 1820.00

Comment:

RSI shows an uptrend in the medium term. 

Key levels: