Gold price continues lower for third day in a row as the selloff in the markets continue with Dow Jones entering bear market. Markets are under heavy selling pressure after President Trump ban all travel from Europe in an attempt to offset the coronavirus spread in the country. Gold is on the offer as many investors book some profits to cover short exposure in other assets. The panic in markets also force some investors to keep cash and just jump out of any trading activities due to high volatility. Cash is the king, as the coronavirus outbreak impact can’t yet be assessed.
The World Health Organization (WHO) declared the coronavirus as a pandemic, adding that Iran and Italy were now on the frontline of the disease and other countries would soon join them.
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Gold Price Resistance and Support
Gold price is 0.10% higher today after yesterday sharp drop. The last three trading sessions gold price is trading higher in the morning but as the day progress sellers are pushing the price in the red, showing that the bulls are running out of steam. The technical outlook for gold price is positive for the short term but looks like at these levels gold has lost the safe haven status.
On the downside first support stands at $1630 the daily low. Next support for gold price would be met at $1589 the 50-day moving average. If gold breaks below that level, sellers will target the low from March 2nd low at $1,575.
On the other side, initial resistance for gold price stands at $1650 the daily high. A move above would open the way for the next resistance at $1670 the high from yesterday’s session. More offers might emerge at $1681 the high from March 10th.
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