|

XAU/USD Outlook: Gold hits seven-year high on safe-haven buying despite optimistic signals over coronavirus case

GOLD

Spot gold extends steep ascend on Thursday, inflated by strong safe-haven demand on fears of coronavirus spread outside China, despite signs of strong drop in the number of new cases and PBOC's cut of benchmark lending rate, in attempts to support the economy and reduce negative impact from virus outbreak. The yellow metal rose to new seven-year high ($1619) after breaking previous top at $1611 (posted on 8 Jan). Gold price is currently riding on extended wave C of five-wave sequence from $1547 and pressures its FE200% at $1621, violation of which would expose Fibonacci expansion level at $1632 (238.2%). Caution of bulls losing traction on fresh dollar's advance, overbought daily stochastic / RSI, while bullish momentum is fading. Corrective dips below $1600 handle are expected to offer better buying opportunities while contained above $1590 zone (near Fibo 38.2% of $1547/$1619 upleg). Rising 10DMA ($1584, also near 50% retracement) marks pivotal support, break of which would put bulls on hold.

Res: 1619; 1621; 1632; 1639
Sup: 1603; 1600; 1591; 1584

XAUUSD

Interested in XAU/USD technicals? Check out the key levels

    1. R3 1630.9
    2. R2 1621.95
    3. R1 1617.46
  1. PP 1608.51
    1. S1 1604.02
    2. S2 1595.07
    3. S3 1590.58

Author

Slobodan Drvenica

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

More from Slobodan Drvenica
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD flatlines below 1.1800 ahead of Fed Minutes

EUR/USD struggles to find direction and continues to move sideways below 1.1800 for the second consecutive day on Tuesday as markets remain in holiday mood. Later in the American session, the Federal Reserve will publish the minutes of the December policy meeting.

GBP/USD retreats to 1.3500 area following earlier climb

GBP/USD loses its traction and trades flat on the day near 1.3500 after rising to the 1.3530 area early Tuesday. Trading conditions remain thin ahead of the New Year holiday, limiting the pair's volatility. The Fed will publish December meeting minutes in the late American session.

Gold aims to regain the ground lost

Gold gathers recovery momentum and advances toward $4,400 on Tuesday after losing more than 4% on Monday. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.

Tron steadies as Justin Sun invests $18 million in Tron Inc.

Tron (TRX) trades above $0.2800 at press time on Monday, hovering below the 50-day Exponential Moving Average (EMA) at $0.2859.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).