Gold Price News and Forecast: XAU/USD bulls keep the baton above $1600 amid coronavirus fears

FXStreet Team FXStreet

Gold Price Analysis: Lower high, overbought RSI check buyers inside short-term rising channel

Gold prices stay mildly positive around $1,621 during early Friday. The yellow metal has been flashing a lower high formation since its pullback from $1,623.80 while MACD is also likely turning negative. Further to support the odds of a pullback are RSI conditions that signal a halt to the additional upside.

As a result, the bullion may decline to Wednesday’s high of $1,613 while the support line of a short-term rising channel, at $1,611 can question extra downside. If at all the quote dips below $1,611, $1,605 and $1,600 can entertain the bears ahead of recalling the early-week levels surrounding $1,584/83.

Gold: Bulls keep the baton above $1600 amid coronavirus fears

Gold stays positive around $1,622 ahead of the Tokyo open during Friday’s Asian session. While coronavirus has been the key to the bullion’s run-up, downbeat fundamentals from major economies also please the bulls.

The latest numbers from Hubei, as of February 20, suggest there are 411 new cases and 115 new deaths versus 349 new cases of infection and 108 deaths by the end of February 19. Despite the second change in the methodology to count, there have been more than 2,144 deaths and 62,442 infections in the region so far due to the epidemic. Also to note is the pace of contagion surrounding Japan, South Korea and Singapore.

XAU/USD

Overview
Today last price	1623.11
Today Daily Change	3.46
Today Daily Change %	0.21
Today daily open	1619.65

Trends
Daily SMA20	1578.73
Daily SMA50	1547.59
Daily SMA100	1513.8
Daily SMA200	1472.55

Levels
Previous Daily High	1623.79
Previous Daily Low	1603.94
Previous Weekly High	1584.36
Previous Weekly Low	1561.99
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1616.21
Daily Fibonacci 61.8%	1611.52
Daily Pivot Point S1	1607.8
Daily Pivot Point S2	1595.94
Daily Pivot Point S3	1587.95
Daily Pivot Point R1	1627.65
Daily Pivot Point R2	1635.64
Daily Pivot Point R3	1647.5

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EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.