Despite the convincing outcome of the US January labor market report, the price of gold maintains a bullish return up to the $1,574 resistance mark during Friday’s trading session as the precious metal closed the week’s around the $1570 level.
All this bullish movement came in response to the rising global concerns about the worsening of the situation in China due to the disruption of the Coronavirus. To date, there is no proper vaccine announced to cope up with this disease, and the number of victims is growing, whether by death or disease, and the disease has expanded to more than 20 nations throughout the world besides China.
As we know, the precious metal gold is an absolute haven for traders during the times of uncertainty, as is the situation now with the world’s interests about Corona. The Chinese government declared that a 1,500-bed hospital was made in two weeks in Wuhan, and another 1,000-bed hospital was created in 10 days during the previous week. The city council, with a people of 11 million, has announced it will launch hygiene operations twice a day for hospitals, markets, public toilets, and other facilities.
Gold – XAU/USD – Daily Technical Levels
Support Resistance
1,562.34 1,576.29
1,554.3 1,582.19
1,540.35 1,596.14
Pivot Point 1,568.25
Gold is trading sideways within the symmetric triangle pattern, which is keeping gold bearish below 1,583 and bullish above 1,570. The weaker dollar sentiment is keeping gold prices bullish as investors are feeling less confident about the U.S. dollar since the release of worse than the expected unemployment rate, released on Friday. Today, we can consider staying bullish above 1,568 as gold prices can soar towards 1,579/1,581. Good luck!
