Gold Intraday Outlook Apr 22 A Seesaw Battle

Gold Intraday Outlook (Apr 22): Seesaw Battle

Gold, widely considered as a safe haven asset, failed to shine yesterday on the back of sharp declines in U.S. equity markets. Some investors would argue that the continued weakness in oil prices will drag stocks market lower, some would say ultra-low fuel would raise doubts about the inflation outlook, where gold could also be seen as an inflation hedge. The see-saw battle between the bears and the bulls continues.

Nevertheless, from a technical point of view, the intraday outlook for gold is skewed to the downside as shown on the 30-minute chart. While it is broadly trading within a consolidation range after a recent decline, lower-highs seems to be formed. Therefore, the top of the range at $1,703 may be considered as the nearest resistance, and the first and second support are likely to be located at $1,672 and $1,661 respectively. In an alternative scenario, a break above might open a path to $1,711 on the upside.

Source : Trading View, GAIN Capital

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.