The safe-haven-metal prices continued to flash green and rose to $1,588.70, mainly due to the risk-off market sentiment in the wake of China coronavirus outbreak threats. It is worth to mention that the gold prices recently got love from the fears of China’s coronavirus outbreak, as well as the headlines from the Middle East and the global trade news also add in the risk tone in the market.
According to the recent statement, the death toll in China due to coronavirus has risen to more than 80 from the 57. Meanwhile, Chinese authorities have recently updated the number of people affected by coronavirus as 30,400. Besides, more cases are also found in the United States, Japan, and Sydney. Whereas, the World Health Organization is likely to change its statement of delaying to call the coronavirus as International emergency amid the worldwide spread of the virus.
On the other hand, the renewed fears of the United States and Iran war also threatened the market risk-tone after repeated attacks on the US troops in Iraq on Sunday. The Sanctions on Iran from US Trump’s Administration has also added in the risk-off sentiment of the market.
Meanwhile, the US ten-year treasury yields hit the lowest from October 09 to 1.63%, whereas the S&P 500 decline more than 1.0% to 3,258 by the press time.
Looking forward, the traders will keep their eyes only on the trade and geopolitical news for fresh clues due to the lack of major data and events on the economic calendar in the wake of Australia and China’s holiday.
Daily Support and Resistance
- S3 1529.51
- S2 1548.81
- S1 1560.32
Pivot Point 1568.11
- R1 1579.62
- R2 1587.41
- R3 1606.71
On Monday, the boosted safe-haven demand has prompted a huge surge in the gold prices as it has opened with a gap from 1,572 to 1,581. Even now, gold prices are staying over 1,577 support zone, and bearish breakout of such level can prolong bearish trend unto 1,572 level. The general trend is bullish presently, but this gap should be swelled here we see further buying in gold. Good luck!