• Gold has have moved another leg lower in the session.
  • There is a strong support zone at the 61.8% Fibonacci level.

Fundamental backdrop

Equities were on the back foot earlier in the session after US President Donald Trump went on the offensive yesterday saying that "China could have stopped the COVID-19 plague". This comment among others sent Asian bourses lower, there are also some suggestions that Chinese companies may be delisted from the US indices and this could mean some strong capital outflows. According to Reuters sources, Baidu are already looking to delist from the Nasdaq index to boost their valuation. 

The US market has now opened and managed to push higher despite some of the negativity from Asia and the EU. The major indices have subsequently moved into the red and gold has also pushed to the downside despite the negative risk tone. The US dollar index has managed to move higher after three negative sessions and currently trades 0.22% higher on Thursday

Fed's Williams has also been on the wires today saying that it is the central banks view that negative rates are not the right tool. He then went on to say the goal is to keep rates low to support the economy but not have them go negative. Today the market also received the latest US initial jobless claims data which printed at 2.483 million just slightly higher than the 2.400 million expected by analysts but firmly within the high low estimates.

Technical picture

There has now been a confirmation that the price is headed toward a lower zone. The price waves on the hourly chart have now made a lower high lower low pattern. This now activates lower support zones. More specifically the 61.8% zone matches up with the 161.8% wave extension to create a very strong zone. If the price continues to move to the downside then the level would be a potential zone where the bulls might step back in. 

There is also the issue of the black trend line in the way. The price would need to break that before getting to the aforementioned support level. The Relative Strength Index indicator is in an extremely oversold zone. This could mean that the price might pullback in the near term before moving lower later on down the line. 

Gold moves lower

Additional levels

XAU/USD

Overview
Today last price 1724.55
Today Daily Change -24.39
Today Daily Change % -1.39
Today daily open 1748.94
 
Trends
Daily SMA20 1715.53
Daily SMA50 1658.42
Daily SMA100 1622.26
Daily SMA200 1557.58
 
Levels
Previous Daily High 1754.04
Previous Daily Low 1742.74
Previous Weekly High 1751.8
Previous Weekly Low 1690.05
Previous Monthly High 1747.82
Previous Monthly Low 1568.46
Daily Fibonacci 38.2% 1749.72
Daily Fibonacci 61.8% 1747.06
Daily Pivot Point S1 1743.11
Daily Pivot Point S2 1737.27
Daily Pivot Point S3 1731.81
Daily Pivot Point R1 1754.41
Daily Pivot Point R2 1759.87
Daily Pivot Point R3 1765.71

 

 

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