Gold Price News and Forecast: XAU/USD extends its corrective slide into the third day

FXStreet Team FXStreet

Gold Price Analysis: Bears take a breather after the $30 drop

Despite the recovery attempts, gold (futures on Comex) remains heavy below $1650, having tested the key support around $1640 region in the last hour.

The prices consolidate the steep declines, as the bulls seem to have found some support from the World Health Organization (WHO) Chief Tedros’s comments. Tedros finally declared the fatal respiratory illness as a pandemic, as the outbreak tightens its grip across the US and Europe. Over 117k people have been infected globally by the virus.

Gold: The yellow metal warms investors – TDS

The BOE was the latest central bank to provide an emergency 50bp interest rate cut, while Italy will spend some 25bn euros to combat the virus. As analysts at TD Securities note, investors are comfortable with gold positions.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.