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- Gold price finds stiff resistance at the 50-day moving average for the second day. Investors shift from gold to USD and back to gold as safe-haven assets
Gold price finds stiff resistance at the 50-day moving average for the second day. Investors shift from gold to USD and back to gold as safe-haven assets. Gold managed yesterday to recover some of the previous session losses but failed to hold above the 50-day moving average. Stronger than expected manufacturing PMI data from China and relief packages from governments around the globe helped ease investors concerns.
Gold hit seven-year highs as traders run for cover in gold the first weeks of the coronavirus outbreak, but as the sell-off in stocks accelerated the selling pressure also moved to gold.
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Gold Price Technical Analysis
Gold price is 0.05% higher at $1589 as the early attempt for higher levels matched intense selling pressure at $1,600. The technical outlook is positive for gold but has to close above the 50-day moving average soon to enhance the uptrend. If the gold price fails to break above the 50-day moving average might see some selling pressure pushing the price down to $1,554. Â
On the downside, initial support stands at $1,582, the daily low. If the gold price moves below, the next support area will be met at 1554 the low from March 24. The 100-day moving average would provide the next support zone $1,546.
On the flip side, first resistance for gold price stands at $1,600 the daily top. Next hurdle stands at $1,627 the high from March 31. A break above might test 1,632 the high from March 30. Â