- Prices of the ounce troy, dropped to fresh monthly lows.
- Risk-on trade sustains the exodus from the safe haven metal.
Prices of the ounce troy of the yellow metal remain immersed into a generalized pessimism alternating gains with losses in the $1,570/80 region.
Gold supported at $1,550
Prices of the yellow metal are recovering ground lost in the last three sessions and are looking to extend the bounce after meeting contention in the $1,550 region, where converge monthly lows and a Fibo retracement of the December-March rally.
In addition, the recent decline in prices have been tracking the negative divergence between prices and the daily RSI. Further downside should not be surprising and could test the key 200-day SMA, today at $1,497.57.
In the meantime, price action around the precious metal continues to look to the developments from the coronavirus vs. the impact on global economy and action from central banks, mainly in the form of a reduction of interest rates and/or the injection of money into the system.
Gold key levels
As of writing Gold is losing 0.47% at $1,568.58 and faces the next support at $1,551.60 (monthly low Mar.13) seconded by $1,549.35 (61.8% Fibo of the December-March rally) and finally $1,535.68 (100-day SMA). On the other hand, a breakout of $1,689.30 (monthly high Feb.24) would expose $1,703.60 (2020 high Mar.9) and then $1,723.30 (monthly high December 2012).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'