Gold hits fresh seven-year high

Gold trades at the highest level since February 2013.
Yellow metal draws bids despite the strength in the US dollar.
The dollar is finding love, possibly due to increased haven demand for the US government paper.

Omkar Godbole FXStreet Contributor

Gold is flashing green for the fourth straight day and is currently trading at $1,624, the highest level February 2013. The anti-risk yellow metal continues to draw bids from retail investors and hedge funds despite the headwinds from other markets.

Gold ignores dollar rally

Gold is currently reporting 7% gains on a year-to-date basis. Meanwhile, the dollar index, which tracks the value of the greenback against majors, has gained 3.5% so far this year.

Dollar strength usually hurts gold. This time, however, the rally in the greenback has failed to deter investors from pouring money into the yellow metal, possibly because the strength in the US dollar is likely a result of increased demand for US treasuries.

The classic haven assets like gold and treasuries have found love amid the coronavirus outbreak in China and the fears of the virus spreading to other parts of the world, leading to a sharp slowdown in global growth.

Gold's bullish momentum will likely strengthen further if the preliminary German PMIs for February, due at 08:30 GMT, miss expectations by a big margin, bolstering recession fears.

Technical levels

XAU/USD

Overview
Today last price	1624.56
Today Daily Change	4.91
Today Daily Change %	0.30
Today daily open	1619.65

Trends
Daily SMA20	1578.73
Daily SMA50	1547.59
Daily SMA100	1513.8
Daily SMA200	1472.55

Levels
Previous Daily High	1623.79
Previous Daily Low	1603.94
Previous Weekly High	1584.36
Previous Weekly Low	1561.99
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1616.21
Daily Fibonacci 61.8%	1611.52
Daily Pivot Point S1	1607.8
Daily Pivot Point S2	1595.94
Daily Pivot Point S3	1587.95
Daily Pivot Point R1	1627.65
Daily Pivot Point R2	1635.64
Daily Pivot Point R3	1647.5

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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