Gold needs to hold $1,575
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Last week’s close: Settled at 1571.9, up 6.5 on Friday and up 11.6 on the week
Fundamentals: Gold and other safe-have assets ripped higher on the open last night after a healthy Friday session. Risk-sentiment from around the globe is pulling back given the mounting uncertainty tied to the Coronavirus. Does the two-week incubation period mean the number of cases skyrockets in the coming days and weeks? What does it mean for Chinese growth and thus world growth (discussed in more detail above)? If risk-assets stay under pressure, safe-havens should stay bid, however, traders should expect volatility and if risk-assets recover it is important to understand Gold is struggling against previous spike highs.
Technicals: Gold settled right at the top end of major three-star resistance on Friday and it must now hold this level as major three-star support at 1565.8-1571.7 today in order to avoid a failure. Strong major three-star resistance also comes in at 1588.2-1595.7 and this stopped Gold in its tracks last night. Our momentum indicator comes in at 1575 and Gold remains healthy above here on the session.
Resistance: 1588.2-1595.7***, 1613.3**, 1626**