Breaking: Gold price breaks above $1,700 amid growing coronavirus conerns

Yohay Elam FXStreet

The price of gold has been extending its gains at the beginning of the new week in Asia. XAU/USD has reached a high of $1,700.32 at the time of writing.

Growing concerns about coronavirus, especially in Italy, have triggered safe-haven flows toward the precious metal. The eurozone's third-largest country announced severe travel limits in several northern provinces including where 16 million people live, including Milan. The death toll from the virus has climbed from 233 to 366.

Investors fear damage to the US economy, with PIMCO foreseeing an outright recession. The crash in oil prices is not helpful either.

Above $1,700, the next target is $1,720. The all-time high is above $1,900 and is from 2011. Support awaits at the previous seven-year peak of $1,690.

Here is how the move looks on the daily chart:

More Gold Price Forecast: Logs biggest Weekly Gain Since February 2016, focus on coronavirus-related developments

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.

USD/JPY bulls pause near 160.75 amid intervention risks

USD/JPY is consolidating below 160.75 in Thursday's Asian trading, with intervention fears lending support to the Japanese Yen and capping the pair's upside amid a modest US Dollar downtick. The signing of a US-Iran peace deal to end the war and reopen the Strait of Hormuz undermines the Greenback's reserve-currency status.

AUD/USD rebounds toward 0.7050 on US-Iran deal optimism

AUD/USD bounces back toward 0.7050 in the Asian session on Thursday as the US Dollar retreats from its highest level since late March, touched in reaction to the Fed's hawkish tilt the previous day. The US and Iran electronically signed a MoU aimed at ending the war and reopening the Strait of Hormuz, boosting investors' confidence and undermining the safe-haven USD.

$4,300 reclaimed: Gold bounces as US-Iran peace deal signing offsets Fed’s hawkish hold

Gold is reversing the previous slump early Wednesday, regaining $4,300 after finding fresh buyers near $4,250. The US Dollar retreats as US-Iran peace deal optimism overshadows hawkish Fed outlook. Technically, Gold needs a sustained break above the 21-day SMA near $4,390 to revive the recovery.

Bitcoin loses $65,000 while Ethena and Stellar advance

The broader cryptocurrency market remains divided with Bitcoin slipping below $65,000 on Thursday after Kevin Warsh’s hawkish speech the previous day, while altcoins like Ethena and Stellar advance upwards. Demand for altcoins with real-world utility, linked to stablecoins or tokenized stocks or bonds, fuels the short-term buying pressure.

A new era for the Fed

The Fed has shifted to a more hawkish stance at the first meeting chaired by Kevin Warsh. Although rates were left unchanged, there will be meaningful adjustments to how the Federal Reserve operates in the coming months and years. There are two main takeaways from today’s meeting, firstly what the Fed did, and secondly, what they are planning to do.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.