Daily Brief, Feb 24: Things You Need to Know About Gold Today
Arslan Butt • 2 min read
Good morning, traders.
On Monday, the market continues to trade the risk-off sentiment in the wake of coronavirus uncertainty. On the news front, all eyes will remain on the German Ifo business climate figures, which are expected to drop slightly. We may experience a slight drop in EUR/USD, but the overall focus will remain on the technical side of the market.
Today in the early Asian session, the safe haven metal prices rose to $1,664.15, representing 0.9% gains on the day, mainly due to risk-off market sentiment in the wake of intensifying coronavirus fears. At this time, gold is currently trading at $1.665.45 and consolidates in the range between the 1,654.80 – 1,682.55. However, the yellow metal is gaining demand day by day due to escalating fears of coronavirus. The precious metal gold gained 0.9% to $1,664.15 by 12:58 AM ET (04:58 GMT). The yellow metal gained 3.8% last week, hitting seven year highs.
As per the latest update, China is decreasing some limitations in the Wuhan province and may allow non-local citizens to leave the city at the center of the outbreak. Whereas Guangdong province in China, which has the most confirmed infections after the Hubei region, decreased its coronavirus emergency response level from its highest this morning.
On the flip side, the number of coronavirus cases in Italy’s Lombardy region surged to 89 on Sunday from 54, leaving the country with 150 confirmed infections, the highest in Europe, and about five times that of Germany, whereas the news came that the total number of virus cases rose past 77,000 in China.
The yellow metal prices rose 3.8% last week, hitting seven year highs. More importantly, gold may hit $1,700 in the next 6 to 12 months and $2,000 in the next 12 to 24 months.
Daily Support and Resistance
Pivot Point 1639.47
GOLD prices have opened dramatically higher in the wake of increased safe-haven appeal. On Monday, the yellow metal has opened with a gap to place a high of around 1,680 but closed an hourly candle half bullish and half bearish.
Technically, gold should fill the gap today or in the upcoming days, but in order to to do so, gold prices should drop to 1,646 level. The 50 periods EMA is suggesting bullish bias, but there’s a massive difference between the current market price of 1,661 and 50 periods EMA which is at 1,627.
It demonstrates that gold has a good room for a bearish retracement. For now, the immediate support is likely to be found around 1,647 and resistance around 1,665.