Gold: Historical High is now Insight

On Thursday, spot gold marked a day-high near $1,899, which is not far from its historical high near $1,920, and ended 0.9% higher at $1,887...

Gold 1

On Thursday, spot gold marked a day-high near $1,899, ending 0.9% higher at $1,887. On the other hand, spot silver retreated 1.8% and the gold/silver ratio rebounded 2.7% after a 13.0% decline in the previous three sessions. This could possibly suggest that gold is catching up with silver.


Source: Trading Economics

Meanwhile, official data showed that the latest initial jobless claims rose to 1.416 million from 1.307 million in the prior week, the first increase since March, showing the impacts of coronavirus resurgence.



Source: TradingView, Gain Capital

From a technical point view, spot gold has formed a strong bullish rounding bottom pattern as shown on the weekly chart, and a break-through above its historical high near $1,920 is awaited.



Source: TradingView, Gain Capital

From an intraday point of view, previously we mentioned that spot gold's momentum was getting stronger, now it still maintains a bullish bias as shown on the 1-hour chart

However, there is signs of a bearish RSI divergence, which may suggest a potential downside correction before the next rally. Bullish investors may consider $1,860 as the nearest intraday support, while a break above the nearest resistance at $1,898 would open a path to the next resistance at $1,920. Alternatively, losing $1,860 would indicate that the next support at $1,846 is exposed.


More from Gold

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.