Gold Price Analysis: Looks to stabilize around $1550 after Fed-led wild ride


  • Gold in search of fresh direction after $50 move post-Fed rate cut.
  • Stalled USD rebound and Treasury yields slump continue to underpin.
  • Broad market sell-off amid coronavirus to keep the upside in check.

Having witnessed a volatile early Asian session, gold (futures on Comex) is stabilizing near the mid-1550s, as investors await fresh catalysts for the next direction in the prices.

The yellow-metal opened with a $45 bullish opening gap this Monday, as traders sold-off the greenback across its main competitors, responding to the surprise rate cut delivered by the US Federal Reserve (Fed) late Sunday.

The dollar sank in tandem with the US Treasury yields, as the demand for the US bonds rose, with markets unwilling to buy into the Fed rate cut decision that is said to cushion the blow of the coronavirus impact on the economy.

Gold, however, failed to sustain at higher levels and fell as low as $1524 to close the gap, as investors locked-in gain after the upsurge. The buyers re-emerged around the latter, prompting a recovery in the commodity towards $1550, as the broad US dollar rebound stalled.

Markets now remain in a wait and see mode ahead of the G7 and EU Finance Ministers’ economic response to the virus outbreak, which will have a significant impact on the risk sentiment and the dollar trades, eventually influencing gold prices.

Gold technical levels to watch

XAU/USD

Overview
Today last price 1547.39
Today Daily Change 17.03
Today Daily Change % 1.11
Today daily open 1530.36
 
Trends
Daily SMA20 1624.02
Daily SMA50 1589.04
Daily SMA100 1535.33
Daily SMA200 1499.05
 
Levels
Previous Daily High 1598.08
Previous Daily Low 1504.72
Previous Weekly High 1703.4
Previous Weekly Low 1504.72
Previous Monthly High 1689.4
Previous Monthly Low 1547.56
Daily Fibonacci 38.2% 1540.38
Daily Fibonacci 61.8% 1562.42
Daily Pivot Point S1 1490.69
Daily Pivot Point S2 1451.03
Daily Pivot Point S3 1397.33
Daily Pivot Point R1 1584.05
Daily Pivot Point R2 1637.75
Daily Pivot Point R3 1677.41

 

 

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