XAU/USD Outlook: Gold advances to two-week high on fresh risk aversion
Spot gold advanced to the highest level in two weeks in early US session trading on Tuesday, driven by fresh safe-haven demand on renewed weakness in the stock markets and rising concerns about coronavirus epidemic negative impact on global growth.
Recovery leg from $1547 (5 Feb low) is riding on the third wave, which hit its 100% Fibonacci expansion ($1591) and requires validation on break above.
Bulls pressure strong barrier at $1593 (3 Feb high), violation of which would expose psychological $1600 level and FE 138.2% at $1603.
Bullish daily techs underpin the action, but overbought stochastic warns that bulls may face headwinds. Read more...
Gold Daily News: Virus fears didn't scare risk-on assets' investors
The gold futures contract gained 0.48% on Friday, as it extended its short-term uptrend. The yellow metal got close to resistance level of $1,600 again, as it reached daily high of $1,588.20. Yesterday, the price of gold went even higher retracing more of its early February downturn, but it is still slightly below February 3 high of $1,598.50. Read more...
Trump and Economic News That Drive Gold, Not Just Coronavirus
Coronavirus, the topic du jour. It is still the major threat for the global health and economy. But we should not forget about other geopolitical and economic developments. What do they imply for the gold market?
Coronavirus, China's Economy and Gold Prices
The number of cases of coronavirus reported by the WHO have increased from 45,171 cases and 1,115 deaths by February 12 to 51,867 cases and 1,669 deaths by February 16, 2020. However, the number of new cases is slowing down, which suggests that the epidemic could reach a turning point within weeks. This is of key importance not only for the global health but also for the global economy, as the sooner the epidemic is over, the quicker China's economy will recover. As a reminder, the quarantines of the whole cities like Wuhan and other compulsory measures disrupted the supply chains and hampered the Chinese economy. Read more...
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