Daily Brief, Mar 23: Everything You Need to Know About Gold Today
Arslan Butt • 2 min read
Good morning, traders.
The global viral disease coronavirus is heavily impacting the global financial markets. I hope you are taking precautionary measures against coronavirus and staying safe. On Monday, the economic calendar remains pretty thin due to a lack of high impact economic events. Therefore, the primary focus will remain on the technical side of the market. Whereas, the market is likely to exhibit a thin trading volume today.
Speaking of gold, the safe haven metal prices were flashing green and rose above the $1,500 mark at opening mainly due to broad-based US dollar weakness. The early declines in the global equity market also gave some support to gold prices because investors are still worried about the impact of intensifying coronavirus outbreak. At the moment, gold is currently trading at 1,494.70 and consolidates in the range between the 1,485.10 and 1,510.70.
Earlier during the Asian session, the yellow metal dropped 0.80% to $1,486 and failed to get support from the fresh risk-off in the markets. On the other hand, the US Senate’s failure to pass the much-awaited COVID-19 Bill sent the Treasury yields and Asian stocks down.
The United States is now the 3rd-largest in the ranking of virus infections after Italy and China. The reason behind the risk-off market sentiment could also be news from Japan that signaled that Asian countries may soon ban entries of US travelers.
Meanwhile the Australian government announced the second round of stimulus, whereas RBNZ also delivered massive measures to control the economic implications of the disease during the weakened.
Looking forward, investors will now keep their eyes on the US headlines and further global measures to control the pandemic for immediate direction.
Gold – XAU/USD – Technical Outlook
GOLD prices are consolidating in a narrow trading range of 1,511 – 1,478. On Monday, the fundamental’s side of the market remains a bit muted, which is why movements in the market remain pretty thin, and we can expect the same kind of response today.
Daily Support and Resistance
Pivot Point 1498.12
If gold breaks the 1,510 resistance level, it may lead the precious metal prices towards 1,521. On the lower side, gold prices can drop to 1,464 on violation of 1,479 support levels. All the best, and stay tuned to FX Leaders for more updates!