Gold Price Extends Rally to Fresh Seven-Year Highs
The gold price breaks higher for the fifth consecutive trading session as investors continue to run for cover in the safe-haven assets. Now the action looks more like a panic buying as uncertainty on the economic impact of the coronavirus outbreak in the global economy prevails. PBOC intervention move to cut the loan rates failed to calm investors.
In China, the number of new coronavirus cases has been on the decline in the last three days, but still is too soon to say that the coronavirus outbreak has peaked. The risk is on the upside at least until there are some signs of containment of the coronavirus spread.
Gold price makes today fresh seven-year highs as the rally which started in mid-December 2019 is intact. Bullish momentum for the precious metal will hold as long as the price holds above the $1600 mark.
Looking to higher levels, the first resistance for gold price stands at $1636.51 the daily top. A break above might open the way for the next resistance at $1649 the high from February 14th, 2013.
On the other side, immediate support for gold stands at $1619.11 the daily low. The next obstacle to the downside stands at 1604 the low from yesterday’s trading session. If the gold (XAUUSD) breaks below, bears will target the low from February 18th at $1,580.