On Monday, the yellow metal gold prices went to more than seven-year high as a stock market retreat on risks over the widening coronavirus break, and its economic influence drove traders to safe-haven assets, although profit-taking following unwound much of the metal’s rise.
Earlier today, the gold reached its highest since December 2012 at $1,702.56 before falling back 0.5% lower to trade at $1,665.68 per ounce. The U.S. gold futures dropped 0.4% to $1,666.
Over the weekend, 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). This morning, U.S. stock futures slid over 4%, while spot gold hit the key level of $1,700 an ounce.
Pivot Point 1669.45
The yellow metal gold prices extend trading sideways, tossing in between green and red in the wake of increased demand for safe-haven assets. It earlier touched 1,702 and now drops to 1,662 level. On the lower side, the precious metal may fund support around 1,660 and 1,647, while resistance continues to stay at 1,670.