Breaking: Gold crashes below $1,600, margin calls cited

Yohay Elam FXStreet

Gold is trading below $1,600 despite the risk-off sentiment stemming from coronavirus fears.

Experts talking to Bloomberg have said that the yellow metal has been hurt by margin calls as several funds needed the cash amid the stock market crash. The metal is used to a liquid asset that occurs in the equity market, according to Standard Chartered.

Others say that overbought conditions have triggered profit-taking.

Beforehand, safe-haven flows have pushed XAU/USD to a seven-year high of $1,689.

Gold has reached hit a low under $1,585 at the time of writing. It is hitting the 200 Simple Moving Average on the four-hour chart, suggesting a potential bounce. However, the Relative Strength Index is still above 30, thus outside oversold conditions.

Nevertheless, after this sharp correction, XAU/USD has room to rise, especially if Covid-19 remains a scare.

See Gold may top $1,800 as coronavirus in Italy propels market panic – Interview with Kathleen Brooks

-- more to come

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD struggles to build on recent rebound, holds above 1.1550

EUR/USD trades marginally lower on the day but holds above 1.1550 in the American session, following Thursday's rebound. The pair holds near its intraday high as the US Dollar remains pressured by hopes the Middle East conflict will soon come to an end.

GBP/USD hovers around 1.3400 as investors await war clarity

GBP/USD remains near its daily open, not far from 1.3400, in the second half of Friday's session. The US Dollar lost its previous intraday strength and weakens as investors await clarity on the US-Iran war.

Gold stabilizes above $4,200 as wait-and-see continues

After rising more than 3% on Thursday, Gold (XAU/USD) stabilized around the $4,200 mark in the American session on Friday. The US dollar seesaws between gains and losses, but remains within familiar levels as investors remain skeptical yet hopeful about a resolution to the Middle East conflict.

Crypto Today: Bitcoin, Ethereum, XRP recovery slows amid incessant capital outflows

The cryptocurrency remains in a broader corrective bias on Friday, despite majors such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) holding slightly higher than early-week support levels.

SpaceX launches 24% higher at Friday debut

Space Exploration Technologies (SPCX), aka SpaceX, zoomed 24% higher soon after the start of its first IPO trading day on Friday. Shares of the rocket and artificial intelligence (AI) company founded by Elon Musk began trading at about 11:46 am EST and quickly gained speed.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.