Gold price started the week lower after a short positive break on Friday as the liquidation of all assets set to continue for one more day amid the global disruption due to coronavirus outbreak.
Gold hit seven-year highs as the coronavirus start spreading around the globe. Investors run for cover in gold the first weeks of the crisis, but as the sell-off in stocks accelerated they started the liquidation of gold also.
Gold price lost over 14% from its highs in early March, as investors move to cash-only portfolios amid the USD funding crunch, and despite the recent emergency measures from central banks and governments around the globe.
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Gold Price Technical Levels to Watch
Gold price is 0.66% lower as the Friday’s rebound stalled at the 200-day moving average, a level that also proved a strong hurdle on Friday. The correction from the $1702 March highs stalled at 1455, which tested twice but the precious metal managed to bounce. The technical picture is bearish for gold, and only a decisive close above the 200-day moving average might cancel the negative trend.
On the downside, first support stands at 1482 the daily low. If the gold price breaks below, next support area will be met at 1464 the low from March 19th. Below that level, sellers will target the low from March 16th, at $1,450.
On the other hand, the initial resistance for XAUUSD stands at $1501 the 200-day moving average. Next hurdle stands at $15085 the daily high. A break above might test 1515 the high from March 20.
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