Daily Brief, Feb 25: Everything You Should Know About Gold Today
Arslan Butt • 2 min read
Good morning, fellas.
On Tuesday, eyes will remain on the US consumer confidence data, which may trigger some buying in the US dollar today. Overall, the market is again likely to follow technical trading levels. As per the latest update, China is decreasing some limitations in the Wuhan province and may allow non-local citizens to leave the city which is 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.
Consequently, yesterday gold 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. GOLD prices climbed more than 2.5% to over the seven-year top as the extension of coronavirus outside China, and its potential impact on global economic growth pushed safe-haven buying.
Japan has recorded 837 coronavirus cases, including 691 cases related to the “Diamond Princess” cruise ship, with a fatality number of four. The number of confirmed cases in South Korea surged to 602 (6 deaths) as the country raised its infectious-disease warning to the highest level.
Italy said there were over 150 cases across five regions (3 deaths). Meanwhile, in China, official numbers showed nearly 77,000 cases and over 2,400 deaths. The World Health Organization announced it is concerned about the growing number of problems without any apparent connection to China. Consequently, investors are moving funds into gold due to its safe-haven appeal.
Gold – XAU/USD – Daily Technical Levels
Pivot Point 1639.47
The precious metal gold has already filled the gap it placed on Monday’s market open in the wake of coronavirus outbreak. For now, it’s trading at 1,655 and is facing immediate support around 1,643 level.
In the daily timeframe, gold has formed a shooting star candle, which is suggesting that the bullish are exhausted, and sellers may be looming around the corner.
Gold has completed 38.2% Fibo retracement at 1,643 level, and above this, we can see a slight bullish recovery, however, in case of bearish breakout of 1,643 level, we may see gold prices going after 50% and 61.8% Fibo level of 1,624 and 1,604 in the coming days. In the small timeframe, let’s consider choppy sessions in between 1,640 and 1,662.