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Gold Exhibits a Dramatic Dip – Is It Good Time to Go Long?

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On Thursday, the precious metal fell dramatically despite worries about the economic influence of the coronavirus break on the global market.s The United States rejected flying from virus-infected Europe, although gains were capped as investors covered margin calls after plunge inequities.

The global coronavirus crisis deepened, as the number of cases surged to 7,375 (366 deaths) in Italy, to 7,313 (50 deaths) in South Korea, and 6,566 (194 deaths) in Iran. The situation is also worsening in France (1,126 cases), Germany (1,040 cases), Spain (674 cases), and the U.S. (534 cases). The New York Stock Exchange reopened trading following a brief pause initiated by a 7% slump quickly after the market opened. 

Support Resistance

1,646.71     1,696.48

1,619.68     1,719.22

1,569.91     1,768.99

Pivot Point 1,669.45

The yellow metal gold slips dramatically, falling from 1,649 high level to 1,573 level during the U.S. session open. Usually, gold get’s stronger when the stock market drops, but in today’s case, both the stock markets and billions are falling like a tit for tat situation. 

At the moment, gold is gaining support at 1,574 level, and violation of this can open the selling room until 1,562 mark. While the closing of candles above 1,573 can help us capture a quick retracement until 1,602 level. Let’s wait for the market to calm down a bit before we place further bets in gold. 

Good luck! 

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