Gold Price Analysis: XAU/USD surges to new weekly highs amid California's coronavirus emergency

Yohay Elam FXStreet

Gold prices are on the rise again. The safe-haven asset is responding to a worsening market mood amid the coronavirus crisis. The US state of California – home to Silicon Valley – has declared a state of emergency after confirming the first death from the disease. Moreover, the virus is spreading all over the world and causing disruptions.

After a spell of calm and a rate cut by the Fed, the precious metal is on the rise again. IT is trading around $1,64, the highest this week.

The next level is $1,660, then the temporary high support at $1,670, and then the seven-year high of $1,689.

Support awaits at $1,635, followed by $1,625.

The Federal Reserve surprised markets this week with a double-dose rate ut of 50 basis points on Tuesday. Bond markets are pricing in another cut in the upcoming scheduled event on March 18.

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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