Gold Price Analysis: Looks to stabilize around $1550 after Fed-led wild ride

Gold in search of fresh direction after $50 move post-Fed rate cut.
Stalled USD rebound and Treasury yields slump continue to underpin.
Broad market sell-off amid coronavirus to keep the upside in check.

Dhwani Mehta FXStreet

Having witnessed a volatile early Asian session, gold (futures on Comex) is stabilizing near the mid-1550s, as investors await fresh catalysts for the next direction in the prices.

The yellow-metal opened with a $45 bullish opening gap this Monday, as traders sold-off the greenback across its main competitors, responding to the surprise rate cut delivered by the US Federal Reserve (Fed) late Sunday.

The dollar sank in tandem with the US Treasury yields, as the demand for the US bonds rose, with markets unwilling to buy into the Fed rate cut decision that is said to cushion the blow of the coronavirus impact on the economy.

Gold, however, failed to sustain at higher levels and fell as low as $1524 to close the gap, as investors locked-in gain after the upsurge. The buyers re-emerged around the latter, prompting a recovery in the commodity towards $1550, as the broad US dollar rebound stalled.

Markets now remain in a wait and see mode ahead of the G7 and EU Finance Ministers’ economic response to the virus outbreak, which will have a significant impact on the risk sentiment and the dollar trades, eventually influencing gold prices.

Gold technical levels to watch

XAU/USD

Overview
Today last price	1547.39
Today Daily Change	17.03
Today Daily Change %	1.11
Today daily open	1530.36

Trends
Daily SMA20	1624.02
Daily SMA50	1589.04
Daily SMA100	1535.33
Daily SMA200	1499.05

Levels
Previous Daily High	1598.08
Previous Daily Low	1504.72
Previous Weekly High	1703.4
Previous Weekly Low	1504.72
Previous Monthly High	1689.4
Previous Monthly Low	1547.56
Daily Fibonacci 38.2%	1540.38
Daily Fibonacci 61.8%	1562.42
Daily Pivot Point S1	1490.69
Daily Pivot Point S2	1451.03
Daily Pivot Point S3	1397.33
Daily Pivot Point R1	1584.05
Daily Pivot Point R2	1637.75
Daily Pivot Point R3	1677.41

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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