Gold pulls back from fresh seven-year high to sub-$1670 area, coronavirus in focus

Gold prices surge to the highest levels since March 2013.
Increasing cases of coronavirus outside China have recently weighed on the market’s risk-tone.
Updates concerning the epidemic will be the key to watch.

Anil Panchal FXStreet

Gold prices rallied to $1,681.25, the highest since February 2013, during early Monday. The yellow metal recently benefited from the rise in the coronavirus cases outside China while no respite from the contagion inside the dragon nation earlier fuelled the safe-haven. It should be noted that the bullion’s prices have been pulled back to $1667.18 by the press time.

Read: What you need to know for the open: Coronavirus risk-off themes rule the waves

Coronavirus keeps fueling the yellow metal…

With the fears of China’s coronavirus taking a toll on the global economy, traders rush to risk-safety. The same has been pushing the yellow metal’s prices to multi-year tops off-late.

The latest cause of concern was a multi-fold rise in the numbers of coronavirus infected cases from Italy. As per the details, cases from Italy surged three on Friday morning to more than 130 by Sunday.

Even so, China’s President Xi Jinping and the World Health Organization (WHO) continues to try to placate traders by showing optimism that China will be able to tackle the epidemic.

However, the market’s risk-tone pays no attention to such news as S&P 500 Futures decline 1.24% to 3,297 by the press time.

Markets are too sensitive to the coronavirus headlines in recent days and hence any more fearsome news could keep the gold prices heading towards the north.

Technical Analysis

The yellow metal is now en-route to 2013 high surrounding $1,698 with March 2013 top nearing $1613 acting as the nearby support.

Additional important levels

Overview
Today last price	1643.56
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1643.56

Trends
Daily SMA20	1582.32
Daily SMA50	1550.93
Daily SMA100	1515.19
Daily SMA200	1474.38

Levels
Previous Daily High	1649.32
Previous Daily Low	1619.02
Previous Weekly High	1649.32
Previous Weekly Low	1578.88
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1637.75
Daily Fibonacci 61.8%	1630.59
Daily Pivot Point S1	1625.28
Daily Pivot Point S2	1607
Daily Pivot Point S3	1594.98
Daily Pivot Point R1	1655.58
Daily Pivot Point R2	1667.6
Daily Pivot Point R3	1685.88

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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