Gold: Mildly positive below $1580 as risk aversion continues


  • Gold prices hold onto recovery gains near the eight-day top.
  • Risk-tone keeps dwindling amid coronavirus fears, political headlines and broadly strong US dollar.
  • US data, headlines from China will be the keys to watch.

Gold remains firm around $1,578 during Friday’s Asian session. The extension of an increase in coronavirus cases seems to have favored the bullion’s latest run-up after cases shot the previous day on the change of diagnosing method.

As per the latest release from China’s Health Commission, the epicenter Hubei province reports 4,823 new cases on the second day of using the new method. The details suggest that the number of people in serious and critical condition rose to 9,638 from the prior readouts of 7,084.

While realizing the seriousness of the issue, Chinese officials are active enough to infuse financial markets while also not refraining to sack two key officials during the latest Politburo meeting. On Thursday, China’s President Xi Jinping suggested that the government’s efforts were beginning to have positive effects.

Elsewhere, the US Dollar stays firm around four-month high as upbeat data at home, as well as positive comments from the Fed officials, please the greenback buyers. It should be noted that the USD is noted to have a negative correlation with commodities.

On the political front, a rocket strike on the US military base in Iraq as well as the US Senate’s taming of President Donald Trump’s powers to go on a war with Iran offers a little direction to the precious metal.

That said, the US 10-year treasury yields decline two basis points to 1.60% whereas S&P 500 Futures trim 0.12% to 3,373 by the press time.

Moving on, investors will keep eyes on headlines from China and on the global geopolitics while the US Retail Sales and Michigan Consumer Sentiment Index could please the momentum traders afterward.

Technical Analysis

Considering the highs marked since February 04, buyers need to tackle $1,580 immediate upside barrier to aim for monthly top surrounding $1,594 and $1,600 round-figure. On the downside, 21-day SMA around $1,569 and the latest low near $1,562 should be watched during the pullback.

Additional important levels

Overview
Today last price 1577.02
Today Daily Change 0.71
Today Daily Change % 0.05%
Today daily open 1576.31
 
Trends
Daily SMA20 1568.68
Daily SMA50 1534.24
Daily SMA100 1508.35
Daily SMA200 1464.9
 
Levels
Previous Daily High 1578.34
Previous Daily Low 1565.54
Previous Weekly High 1594.01
Previous Weekly Low 1547.56
Previous Monthly High 1611.53
Previous Monthly Low 1517.1
Daily Fibonacci 38.2% 1573.45
Daily Fibonacci 61.8% 1570.43
Daily Pivot Point S1 1568.45
Daily Pivot Point S2 1560.6
Daily Pivot Point S3 1555.65
Daily Pivot Point R1 1581.25
Daily Pivot Point R2 1586.2
Daily Pivot Point R3 1594.05

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trying to set an interim bottom

EUR/USD has been consolidating around 1.0800 for a second consecutive day, ignoring risk-off and broad dollar’s demand. The case for a corrective advance becomes stronger.

EUR/USD News

USD/JPY stabilizes around 112.00 fresh 2020 highs

The USD/JPY pair has finally stalled at 112.22 but holds on to most of its latest gains. Buyers defending the downside in the 111.60/70 price zone.

USD/JPY News

AUD/USD at an over one-decade low near 0.6600

An uptick in the Australian unemployment rate, moving further away from RBA’s desired 4.5% level took its toll on the Aussie, also pressured by ruling risk-off.

AUD/USD News

Gold jumps to the highest level since February 2013, around $1620 area

Gold reversed an early dip to the $1604 area and jumped to fresh multi-year tops during the mid-European session on Thursday.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex MAJORS

Cryptocurrencies

Signatures