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Safe Haven Metal Dropped – Intensified Coronavirus Keep Market Supported

Today in the early Asian session, the yellow-metal prices dropped despite the dropped in the Chinese stock markets and the intensified fears of the coronavirus.

The drop in GOLD prices came even after China’s Shanghai Composite and the Shenzhen Component dropped more than 8% earlier in the day after the country’s National Health Commission confirmed the death toll from the new virus rose to 361 as of Monday. Confirmed cases increased to 17,205, it said.

Notably, the safe haven metal prices initially benefited due to the market’s risk-off in the wake of coronavirus outbreak fears. However, the recently recovered data from Japan and Australia, as well as the Chinese government’s measures to tame the sell-off after long holidays, which might have sent the prices higher.

At the China front, the fears of coronavirus outbreak have grown stronger during the weekend because the numbers of affected peoples crossed 14,300, whereas the death losses rose above 300. Apart from the coronavirus, there is another virus that occurred in Hunan that name is H5N1 bird flu virus.

Daily Support and Resistance

S3 1545.72
S2 1564.89
S1 1577.33
Pivot Point 1584.07
R1 1596.51
R2 1603.24
R3 1622.42

Gold violated the double top resistance level around 1,585 level, but this seems to be fakeout pattern as gold prices have returned below
1,585 resistance becomes a support level. For now, the same level is likely to keep it bearish. On the lower side, gold may find support around 1,577 and 1,572 today. Bullish reversal can be seen above the 1,572 level.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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