Gold Price Analysis: Bears testing $1500 support, down over 1%

Risk-off returns, gold sold in need for cash amid coronavirus chaos.
US dollar stalls its broad corrective slide, funding stress back?
Broad market sell-off amid coronavirus to keep the upside in check.

Dhwani Mehta FXStreet

Gold (futures on Comex) extends the Asian descent into Europe, as the bears test the 1500 demand area amid a fresh risk-aversion wave hitting the markets.

The yellow-metal stalled its overnight bounce just shy of the 1550 mark and resumed its recent bearish momentum, as the sentiment turned sour amid a rising number of coronavirus cases globally.

Meanwhile escalating concerns over the economic impact of the pandemic also dampened the investors' sentiment, as they liquidated their positions in gold once again in exchange for cash so as to cover the losses incurred from the global equities sell-off.

Further, the US dollar stalled its corrective slide across its main competitors, which also collaborates with the latest leg down in gold. The US dollar index hit a fresh one-month high at 99.82 on Tuesday, as the demand for the most liquid currency shot up in times of the coronavirus chaos. The spot now trades at 99.33, having bounced-off a daily low of 99.16.

Despite the global economic stimulus measures deployed, the gold bulls failed to find any reprieve, as liquidity crunch continues to underpin the greenback and keep the yellow metal pressured. Focus remains on the USD dynamics and risk trends amid incoming virus headlines for fresh directives.

Gold technical levels to watch

XAU/USD

Overview
Today last price	1508.70
Today Daily Change	-20.14
Today Daily Change %	-1.32
Today daily open	1528.88

Trends
Daily SMA20	1616.93
Daily SMA50	1587.13
Daily SMA100	1535.95
Daily SMA200	1500.99

Levels
Previous Daily High	1554.06
Previous Daily Low	1465.8
Previous Weekly High	1703.4
Previous Weekly Low	1504.72
Previous Monthly High	1689.4
Previous Monthly Low	1547.56
Daily Fibonacci 38.2%	1520.34
Daily Fibonacci 61.8%	1499.52
Daily Pivot Point S1	1478.43
Daily Pivot Point S2	1427.99
Daily Pivot Point S3	1390.17
Daily Pivot Point R1	1566.69
Daily Pivot Point R2	1604.51
Daily Pivot Point R3	1654.95

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.