Despite the new week starting with stock markets in red, gold has so far been unable to rebound. The short-term trend for bullion has been compromised by the price falling through the support level at $1,850. Investors have moved to other assets, seeking faster gains, although they have not forgotten that central banks will be forced to print money for many years to help the economy to recover from the Covid-19 crisis.
From a technical point of view, the price has now found a support level at $1,780. The next support zone is placed at $1,750, while the following one would be between $1,690 and $1,700. It will be interesting to see investors’ reaction once stock markets correct, as this could potentially trigger new buyers to rediscover gold.
