Daily Brief, Mar 20: Everything You Need to Know About Gold on Friday
Arslan Butt • 2 min read
Happy Friday, traders.
We have made it through another successful week from the forex trading signals viewpoint, but overall, global economies are struggling a lot due to the increased number of coronavirus cases. Consequently, the market is heading into safe haven assets. Here’s everything you need to know about gold today.
Today in the early Asian session, the safe haven metal prices were flashing green and trading above the $1500 level mainly due to new risk-off market sentiment in the wake of increasing fears of global recession.
However, gold prices were recently weighed down due to further efforts by the Trump administration to combat the coronavirus (COVID-19), supporting the US dollar. As a result, Gold prices were under pressure around $1,467, with a low of $1,455, in the earlier Asian session today. As of writing, gold is currently trading at 1,501.60 and consolidating in the range between 1,457.90 and 1,507.85. Gold futures inched back towards the $1,500 mark after taking huge swings between $1,457.9 and $1,486 in the last session. Prices for the yellow metal rose 0.55% to $1,489 by 11 PM ET (3 AM GMT).
The US Senate GOP announced its 3rd-proposal and is very close to the final bill, which is expected on Monday, in order to combat the negative economic impact of the deadly virus. On the other hand, the UK Brexit Chief David Frost is expectedly facing the deadly coronavirus disease. In contrast, British Chancellor Rishi Sunak is expected to take intense action to control the coronavirus.
At the deadly-virus front, the COVID-19 pandemic continues to increase recession fears, while global struggles to calm equity investors in the past week cut into gold’s reputation as a safe haven. Investors flocked to the strengthening US dollar in order to cover losses in other markets. Whereas portraying the risk sentiment, US stock futures marked more than 1.5% losses by press time.
Looking forward, investors will keep their eyes on news concerning the medicine after earlier announcements that Gilead’s Remdesivir medicine is being tested to cure COVID-19. Until then, the global struggle against the epidemic will be the key to watch.
Daily Support and Resistance
Pivot Point 1477.47
GOLD prices are trading at 1,483 level, having tested the support level of 1,452. On the 4-hour chart, the pair seems to form a descending triangle pattern, which is likely to support gold prices at around 1,452 along with resistance at 1,496. A bullish breakout of this level can extend buying until 1,521 level and 1,538. While bearish breakout of 1,447 support can trigger more selling until 1,397 and 1,379, let’s keep an eye on 1,452 as it’s a pivotal level to determine the further trend in gold. Good luck!