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54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Bears attack Gold after a high at $1950 during Asian session

The precious metal Gold, which started the new week on a solid bullish trend to hit a new high at $1950 during the Asian session, has experienced a strong attack by the bears pushing down the gold price to $1940 at the beginning of the new European session. 

 

Many would consider this attack a mere retracement and believe Gold is on its march to the higher resistance at $1,960.00 especially given the uncertainty surrounding the release of the US CPI. 

 

Gold had not been so negatively affected by the worries about inflation and interest rates hikes as it did in the past. The escalation of the Russia-Ukraine wars seems to have placed Gold against all odds, including the Fed's concerns about interest rates hikes

 

Similarly, there is an increasing demand for Gold across borders, given the imminent Easter festivity. Gold prices are undoubtedly affected by supply and demand, suggesting that the current uptrend might last all through the season of the festival. 

 

Hence, some analysts at JP Morgan see Gold and other commodities ready to surge by at least 40% if investors boost their allocation to raw materials. Doing so, no doubt would trigger inflows to the precious metal as a hedge against inflation, especially as the Fed seeks to tame the current rising inflation rates.  

 

The first major resistance for Gold, given the current uptrend, is $1960. Once broken then we can expect a retest of the ATH above $2000. On the downside, if the current trend is defeated, then the next support for gold is at $1930 followed by $1920. 

 

The general sentiment towards Gold generally for this week is positive and we expect that the positive trend will sustain in higher regions. 

 

Last Updated: 11/04/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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