Gold Price Analysis: XAU/USD bulls eye $1,800 threshold as virus-led risk-off fade equities’ rally
Gold prices ease from the multi-year top to $1,794 amid the initial Asian session on Wednesday. The bullion probed November 2011 top the previous day with an uptick to $1,797.40. However, the bulls are waiting for a strong push on the north to break the $1,800 psychological magnet.
Not only the recent pause in the Wall Street benchmark buy weakness in the upside momentum across the global equities also pushes analysts to rethink over their bullish bias. Before a few weeks, we saw the biggest rally in the US shares since the Great Financial Crisis (GFC) and bulls never backed down afterward. While some at the floor cheer the global policymakers’ rush to combat the coronavirus (COVID-19), others analyze ways to divert funds over other venues like cryptos. As a result, ex-Goldman Sachs fund manager Raoul Pal cited the fears of “the largest insolvency event in all history.”
Gold Price Analysis: XAU/USD is in touching distance of the $1800 level and the 8.6 year high
Gold looks set to reach the 8.6 year high during the US session on Tuesday as fears about the coronavirus persist. The demand for physical gold has been increasing with central banks around the world stockpiling the precious metal. SPDR gold ETF holdings are over their 8-year peak increasing by 211.9 tonnes, or nearly 22%, in the second quarter
The last time gold was trading at this level was the back in 2011. The level was used as the consolidation high after the precious metal hit its peak in September of USD 1921.07 per troy ounce and then pulled back.
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