Gold prices surge to highest trading level since 2011
The price of gold rallied above the $1,800 per ounce level this week, as the yellow-metal surged to a nine-year trading high. Gold broke through the $1,800 resistance barrier due to an increase in global coronavirus infection, and the prospects of more monetary stimulus from the United States government. Traders turned increased bullish towards the yellow metal, as the metal is widely seen as a hedge against the weakening US dollar and currency debasement. Silver prices also rallied to a multi-month high this week, around the $19.00 resistance level, due to the positive price correlation between the two popular metals.
- XAUUSD is only bullish while trading above the $1,730 level, key resistance is found at the $1,820 and $1,840 levels.
- XAUUSD is only bearish while trading below the $1,730 level, key support is located at the $1,715 and $1,690 levels.
Bitcoin attempted to recover higher this week, as buyers tried to anchor the BTCUSD pair back above its key 50-day moving average, around the $9,400 level. Bullish tones spread through the broader cryptocurrency market, which lent a much-needed boost towards Bitcoin. Volatility surrounding the BTCUSD pair had dropped to its lowest level since April 2019 this week. In the altcoin space, Litecoin made a notable recovery towards the $45.00 resistance level, while Ethereum continued to track the price of Bitcoin higher.
- The BTCUSD pair is only bearish while trading below the $9,400 level, key support is found at the $8,800 and $8,400 levels.
- If the BTCUSD pair trades above the $9,400 level, buyers may test towards the $10,000 and $10,500 resistance levels.
The Reserve Bank of Australia decided to keep interest rates unchanged at a record low 0.25 percent this week, amidst increasing calls for the central banks to move interest rates into negative territory. The Australian dollar currency failed to react to the dovish policy decision, as most traders and economists had largely been expecting the decision to keep rates on hold. The RBA is under pressure to bring the benchmark interest rate down to zero to lower the strength of the Australian dollar currency. RBA policy members also noted that they expect to keep the Australian interest rate at lower levels for the foreseeable future.
- The AUDUSD is only bullish while trading above the 0.6880 level, key resistance is found at the 0.7000 and 0.7120 levels.
- The XAUUSD is only bearish while trading below the 0.6880 level, key support is located at the 0.6740 and 0.6690 levels.
The British pound rose against the US dollar and euro currency this week, following a bullish budget statement from the UK Chancellor, Rishi Sunak. Chancellor Sunak set forth a hawkish UK budget, which focused on jobs and tax relief, sending the GBPUSD pair back above the 1.2600 level. Traders also choose to focus on weakness surrounding the greenback, as the US dollar fell to a new monthly low against a basket of currencies. Sterling traders now look to a keynote speech from Bank of England Governor Bailey next week, and monthly UK Gross Domestic Product Figures.
- The GBPUSD pair is only bullish while trading above the 1.2500 level, key resistance is found at the 1.2710 and 1.2800 levels.
- If the GBPUSD pair trades below the 1.2500 level, key support is located at the 1.2450 and 1.2420 levels.