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.

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

 

 

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