Gold Price News and Forecast: XAU/USD snaps four-day winning streak, eyes on 200-bar SMA
|Gold Price Analysis: Snaps four-day winning streak, eyes on 200-bar SMA
Gold prices decline to the intra-day low of $1,570.35 by the press time of early Tuesday. While repeated failures to hold the break of 50% Fibonacci retracement of early-January portrays the bullion’s weakness, bullish MACD and sustained trading above 200-bar SMA check the sellers.
That said, the precious metal is currently extending the pullback towards a 38.2% Fibonacci retracement level of $1,565 before visiting a 200-bar SMA level of $1,556.50.
Gold continues to shine-on in the face of the coronavirus
The price of gold has been holding in its February bullish correction with a high of $1,576.98 having travelled from a low of $1,568.13, +0.30% at the time of writing – futures ended the day higher for a fourth consecutive gain.
The economic impact on China due to the fast-moving outbreak of the coronavirus is taking its toll on investor's risk appetite and safe-haven asset classes, such as the precious metals are underpinned due to the flows and lower rates of interest in the bond markets. Investors are more inclined to invest in gold at times of lower yield, especially when there are fragilities in global equity prices.
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