Gold Price Analysis: Quick drop below $1,700 amid hopes for a coronavirus cure, levels to watch

Yohay Elam FXStreet

The price of gold has tumbled below $1700, falling to a low of $1,689. The market mood is positive amid hopes for a cure for coronavirus – Gilead's Remdesivir – and intentions to open the US economy.

The precious metal is a safe-haven asset and is sold off in times of optimism. COVID-19 cases continue rising and any hopes for medication that can help people recover is cheering markets, even though results are partial at this stage.

The next levels to watch are $,675, $1,64 and, $1,605. Looking up, $1,707 and $1,740 are eyed. Here is how the move looks on the four-hour chart. Momentum has turned tot he downside but XAU/USD continues trading above the 50, 100, and 200 Simple Moving Averages.

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.

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