Gold set to shine again after pullback

Giles Coghlan LLB, Lth, MA Financial Source

Reasons for Gold's glow

Gold has had a pullback and now we have a base in place on the four-hour chart. Two dips down into the Pivot Point have found buyers each time.

So, technically that is a place to define some near term risk. Targets at recent highs around $1680.

From a fundamental perspective, the Coronavirus now looks uncontainable. Germany gave up trying to trace the infection route of every patient and there are more and more cases of 'community spread' popping up. i.e. people who have no known connection to a risk area. Furthermore, the ability of people to self-quarantine is unrealistic. For some of those working zero contract hours and self -employed contracts the option of taking two weeks off work will just not be there. People will work. Especially if they are asymptomatic. So, in my book the genie is out of the bottle now. I hope that I am wrong.

So, gold will find buyers as more and more equity falls look ahead. It is difficult to predict all the losers from this so risk-off markets look set to stay here now until the cases plateau. Online vaulting service BullionVault, had its busiest day with £17million changing hands and buyers outnumbering sellers two to one, Goldcore, their rival, also had a record number of transactions with stored assets hitting $100million. ETF flows have seen a continued surge in prices as gold is getting more and more attention.

Therefore, expect gold buyers from market and below.

Learn more about HYCM

Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.