Daily Brief, Mar 11 – Everything You Need to Know About Gold Today
Arslan Butt • 2 min read
Good morning, fellas.
On Wednesday, all eyes will remain on the US Inflation figures, which are expected to remain neutral. However, any change in figures will drive price action in gold, and major currency pairs
The safe haven metal prices gained some fresh bids to $1,653 after falling to the lowest level during three days. However, the yellow metal seems to recover its previous day’s losses mainly due to the renewed risk sentiment in the market in the wake of the intensifying coronavirus fears.
The uncertainty about an incentive package offered by US President Donald Trump to soften the economic impact of the coronavirus epidemic also weighed on the risk sentiment. As of writing, gold is currently trading at 1,663.78 and consolidates in the range between the 1,649.37 – 1,664.40.
As we already mentioned, the risk-tone is damaged and the market is moderately disappointed due to Donald Trump’s delay of the stimulus package, which he had promised on Tuesday. Asian shares and Wall Street futures dropped because of growing uncertainty about Washington’s stimulus package that knocked the steam out of an earlier rally.
On the other hand, the US 10-year Treasury yields turned lower and continuing their march towards an all-time low touched earlier in the week, whereas S&P 500 Futures dropped more than 1.5% to 2,819 by the time of writing.
At the USD front, the greenback dropped against key rivals due to worried sentiment regarding the ongoing coronavirus epidemic. As per the latest reports, the total number of infected cases in mainland China increased to 80,778 as of Tuesday, whereas more than 116,000 people are infected in the entire world. Central banks, meanwhile, are trying to soften the economic fallout of the epidemic.
Looking forward, the US Federal Reserve is expected to deliver one more rate cut during its scheduled policy meeting in the coming week. It should also be noted that Australian PM Scott Morrison declared AUD 2.4 billion worth of health incentives and extended the travel ban to Italy before a few minutes.
Daily Support and Resistance
Pivot Point 1653.17
GOLD hasn’t changed much as it continues to trade below 1,665 level, which is extended by the 50 periods EMA and the previously violated support become resistance level. Gold’s immediate support prevails around 1,647, and closing of candles above this level are suggesting chances of a bullish reversal in the gold prices. In case it breaks below 1,647, the next support can be seen around 1,633. Whereas, a bullish breakout of 1,665 can extend buying until 1,672.