Global stocks bounce back, Gold shines through chaos
The brutal selloff that engulfed global stocks this week took a pause on Friday as risk sentiment slightly i mproved across financial markets.
Most Asian shares recovered during early trade despite Wall Street suffering heavy losses overnight. In Europe, stocks continue to march higher on positive global cues which could support Wall Street later in the afternoon.
Although positive trade data from China and reports of U.S. President Donald Trump meeting Chinese President Xi Jinping at the G20 summit next month has rekindled risk appetite, stock markets are not out of the woods yet.
Concerns revolving around escalating trade tensions, prospects of rising interest rates and global growth concerns remain a drag on global equity markets. With caution likely to heighten ahead of the earning’s seasons, the current stock market rebound could prove to be a mere dead-cat bounce. driving seat above the $1,213 level. While the technical outlook points to further upside, fundamentals are still in the bear’s favour. With the Dollar supported by safe-haven flows and prospects of higher U.S. interest, the medium- to longer-term outlook remains negative for Gold.
Focusing purely on the technical picture, Gold prices turned bullish on the daily charts following a breakout above the $1,213 resistance level.
Investors may utiliSe $1,213 as a fresh support to push prices towards $1228.20 and $1233.50. If prices unable to keep above the $1,213, Gold has scope to depreciate back towards the $1,200 psychological level.