Gold bounces back beyond $1,650 as cornavirus fears renew


  • Gold ignores the previous day’s declines amid fresh challenges to the risk-on.
  • The widespread coronavirus outbreak in the US, the UK and Europe push policymakers towards the stimulus, Australia being the latest one while the US is in the line.
  • California’s Coachella festival delayed, speculations of the Tokyo Olympic postpone refresh.
  • Politico raises doubts over US VP Pence’s claims of enough resources in the lab.

After falling to the lowest in three days, Gold prices gain fresh bids to $1,653 amid Wednesday’s Asian session. The yellow metal seems to recover losses, piled due to risk rebound, as fresh headlines concerning coronavirus (COVID-19) renew fears of the pandemic.

Not only the Trump administration’s inability to offer any major details of US President Donald Trump’s ‘major’ economic response to the virus, but the absence of the Republican leader in the Coronavirus Task Force Briefings also raised initial doubts over the Tuesday’s risk recovery.

Extending the moves were recent coronavirus updates and Politico’s claims that the US labs face shortages of resources to test the infected people.

On the other hand, the idea of postponing the Tokyo Olympics regained market attention despite being turned down by the Japanese diplomats the previous day. Also, cancellation of California’s Coachella festival and news of the UK Health Minister being infected with the deadly virus added to the risk aversion. It is worth mentioning that Japan registered biggest one-day increase in coronavirus cases also portray the fears of the pandemic.

As a result, the US 10-year treasury yields start trimming their earlier run-up to 0.80%, while taking rounds to 0.75%, whereas S&P 500 Futures slip more than 1.5% to 2,819 by the time of writing.

It should also be noted that Australia’s PM Scott Morrison announced the Australian dollar 2.4 billion worth of health package while extending travel ban to Italy before a few minutes.

Given the recent shift in the market’s risk tone, investors will keep eyes on the COVID-19 updates for near-term direction.

Technical Analysis

A sustained refrain to slip below 10-day SMA, currently at $1,641, keep portraying the yellow metal’s strength.

Additional important levels

Overview
Today last price 1652.42
Today Daily Change -28.34
Today Daily Change % -1.69%
Today daily open 1680.76
 
Trends
Daily SMA20 1619.22
Daily SMA50 1583.47
Daily SMA100 1531.3
Daily SMA200 1493.76
 
Levels
Previous Daily High 1703.4
Previous Daily Low 1657.57
Previous Weekly High 1692.34
Previous Weekly Low 1575.58
Previous Monthly High 1689.4
Previous Monthly Low 1547.56
Daily Fibonacci 38.2% 1685.89
Daily Fibonacci 61.8% 1675.08
Daily Pivot Point S1 1657.75
Daily Pivot Point S2 1634.75
Daily Pivot Point S3 1611.92
Daily Pivot Point R1 1703.58
Daily Pivot Point R2 1726.41
Daily Pivot Point R3 1749.41

 

 

Share: Feed news

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.

Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
Trading Pro
Read review
Pepperstone
Read review
XM
Read review
Moneta Markets
Read review
XM
Read review
Moneta Markets
Read review

Recommended content


Recommended content

Editors’ Picks

EUR/USD corrects sharply toward 1.0950 ahead of US NFP, Powell

EUR/USD corrects sharply toward 1.0950 ahead of US NFP, Powell

EUR/USD is extending its correction toward 1.0950 in the European session on Friday. The US Dollar has come up for air after the trade war and recession fears-led sell-off, weighing on the pair. Traders look to the US NFP report and Fed Chair Powell's speech for fresh directives.  

EUR/USD News
GBP/USD remains heavy near 1.3000, US NFP data awaited

GBP/USD remains heavy near 1.3000, US NFP data awaited

GBP/USD is battling 1.3000, under heavy selling pressure in European trading on Friday. Traders resort to profit-taking on their US Dollar short positiions, re-adjusting ahead of the critical US Nonfarm Payrolls data and Fed Chair Powell speech. 

GBP/USD News
Gold price sticks to negative bias around $3,100; bears seem non-committed ahead of US NFP report

Gold price sticks to negative bias around $3,100; bears seem non-committed ahead of US NFP report

Gold price meets with a fresh supply on Friday, though the downside potential seems limited. Trump’s tariffs-inspired risk-off mood might continue to act as a tailwind for the precious metal. Fed rate cut bets weigh on the USD and also contribute to limiting losses for the XAU/USD pair.

Gold News
Nonfarm Payrolls forecast: US jobs growth set to slow in March amid growing worries over US tariffs

Nonfarm Payrolls forecast: US jobs growth set to slow in March amid growing worries over US tariffs

Nonfarm Payrolls are forecast to rise by 135K in March, following a 151K gain reported in February. The United States Bureau of Labor Statistics will release the jobs data on Friday at 12:30 GMT. US labor data could impact the Fed’s interest rate path, potentially affecting the US Dollar's price action.

Read more
Trump’s “Liberation Day” tariffs on the way

Trump’s “Liberation Day” tariffs on the way

United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs. 

Read more
The Best brokers to trade EUR/USD

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025