XAUEUR Analysis: Countries around the world are gradually easing quarantine

April 29, 2020

By IFCMarkets

Countries around the world are gradually easing quarantine

Such a movement occurs when gold becomes cheaper and the single European currency strengthens. Gold rose markedly in price as the Covid-19 pandemic developed. Investors regarded it as a protective asset. A number of countries are now beginning to mitigate quarantine requirements, which may contribute to the correction of precious metal prices. Particularly in the US, a number of companies and organizations in South Carolina, Georgia, Oklahoma, Alaska and some others resumed their work. In Europe, quarantine mitigation was announced by Czech Republic, Greece, Croatia, Switzerland. In turn, the euro may receive support in case of positive statements at the ECB regular meeting on April 30, as well as if data on GDP for the 1st quarter, unemployment and inflation in the Eurozone are positive. European statistics will also come out on April 30. GDP is expected to drop by 3.1% in annual terms, inflation in April + 0.1% and unemployment in March 7.7%.

Indicator VALUE Signal
RSI Sell
MACD Sell
MA(200) Neutral
Fractals Neutral
Parabolic SAR Sell
Bollinger Bands Neutral

 

Summary of technical analysis

Order Buy
Buy stop Above 1545
Stop loss Below 1615

Market Analysis provided by IFCMarkets