Risk-Off Rivals, Gold Becomes a Refuge
Gold rose on Wednesday (January 21st), as the market entered risk-off mode: geopolitical tensions and the threat of a trade war prompted investors to seek safer havens. When risk increases, money tends to move out of risky assets (stocks/cyclical commodities) and into safe havens like gold.
Furthermore, if the dollar weakens and markets fear slowing global growth, gold will benefit even more as it is considered a hedge against high uncertainty.
The gold price at the time of this analysis was $4,862
- Buy if the price is at $4,865
- Sell if the price is at $4,859
Resistance 2: $4,875
Resistance 1: $4,869
Support 1: $4,857
Support 2: $4,851
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id