Gold Price News and Forecast: XAU/USD - Coronavirus hits China’s gold jewelry demand
|GOLD Should Bounce From the W L3 Camarilla
1557-1560 is still the POC zone where Gold buyers might be waiting. The price might bounce towards 1566 and 1574. If 1574 breaks we could see 1582 W H3 pivot retest. A deeper retracement might follow only if 1555 breaks lower. In that case watch for 1552 and 1544. Read more...
Coronavirus hits China’s gold jewelry demand - Bloomberg
The demand for gold jewelry in the world’s top consumer, China, is likely to plunge this year, as the China coronavirus negatively affects the shoppers’ sentiment, per Bloomberg.
Key Points:
“Jewelry retailers such as Luk Fook Holdings International Ltd. are shortening business hours and managing time off for employees in an effort to prevent the disease from spreading.
Zhang Yongtao, Chief Executive Officer of the China Gold Association, noted: “People are not in the mood to shop for jewelry. Stores and shopping malls are closed because of the virus. The sales of gold jewelry and bars will drop substantially this year.” Read more...
Gold hangs near weekly lows, below $1565 level
Gold edged lower for the second consecutive session on Wednesday and is currently placed near the lower end of its weekly trading range, around the $1564-65 region.
The precious metal failed to capitalize on the previous session's late bounce and met with some fresh supply on Wednesday amid a positive mood around equity markets, which tends to undermine demand for perceived safe-haven assets.
Gold weighed down by a combination of factors
The risk-on flows led to a goodish pickup in the US Treasury bond yields, which further played their part in exerting some additional pressure on the non-yielding yellow metal. Meanwhile, the prevailing bullish sentiment surrounding the US dollar did little to lend any support to the dollar-denominated commodity. Read more...
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