The price of gold has been extending its gains at the beginning of the new week in Asia. XAU/USD has reached a high of $1,700.32 at the time of writing.
Growing concerns about coronavirus, especially in Italy, have triggered safe-haven flows toward the precious metal. The eurozone's third-largest country announced severe travel limits in several northern provinces including where 16 million people live, including Milan. The death toll from the virus has climbed from 233 to 366.
Investors fear damage to the US economy, with PIMCO foreseeing an outright recession. The crash in oil prices is not helpful either.
Above $1,700, the next target is $1,720. The all-time high is above $1,900 and is from 2011. Support awaits at the previous seven-year peak of $1,690.
Here is how the move looks on the daily chart:-637193026603165961.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD gains ground above 0.6300 ahead of Chinese data
The AUD/USD pair gathers strength to near 0.6325 during the early Asian session on Monday. The uptick of the pair is bolstered by the weaker US Dollar and special plans from the Chinese government to boost consumption and raise incomes.
EUR/USD: A move to 1.1000 re-emerges on the horizon
EUR/USD enjoyed a broadly upbeat run last week, extending its strong recovery and briefly surpassing the 1.0900 handle to reach multi-month highs. Although the rally lost some momentum as the week wore on, the pair still ended with a solid performance on the weekly chart.
Gold: Bulls act on return of risk-aversion, lift XAU/USD to new record-high
Gold capitalized on safe-haven flows and set a new record high above $3,000. The Fed’s policy announcements and the revised dot plot could influence Gold’s valuation. The near-term technical outlook suggests that the bullish bias remains intact.
Week ahead: Central banks in focus amid trade war turmoil
Fed decides on policy amid recession fears.Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.
Week ahead – Central banks in focus amid trade war turmoil
Fed decides on policy amid recession fears. Yen traders lock gaze on BoJ for hike signals. SNB seen cutting interest rates by another 25bps. BoE to stand pat after February’s dovish cut.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.