On Friday, the precious metal gold trades bearish, falling from 1,635 to 1,624 support level. It seems like traders are doing profit-taking ahead of the weekend. The bearish trend in gold continues despite a drop in stock prices.
Global share prices directed for the most critical week since the world financial crunch in 2008 as traders braced for the disease to shift a pandemic and swiftly spread around the globe. Most of the selling triggered after mainland China had 327 new confirmed cases of infections on Thursday, the National Health Commission announced on Friday.
Besides, Iran reported that its death toll climbed to 26, by far the highest figures outside China, and the total number of infected people held at 245, which also include several senior officials.
Gold – XAU/USD – Daily Technical Levels
Pivot Point 1646.99
On the technical side, the precious metal gold is trading at 1,623 level after violating the double bottom support area of 1,633 level. Looking at the leading technical indicators, the XAU/USD’s MACD has crossed below 0, which is suggesting chances of bearish trend continuation.
Gold may find immediate support around 1,612 for now, and below this, the 61.8% will remain in focus, which may extend support around 1,602 level. Today, we can look for selling trades below 1,626 area. Good luck!