The gold price break above the $1600 mark as the precious metal attempt to recover some of Friday’s heavy losses. The gold price tested the 50-day moving average on Friday and managed to rebound, while today the price retuns above the ascending trendline that began last December.
Investors bet on interest rates cut by the Fed in the next policy meeting that is gold positive. Central banks around the globe might take extra monetary stimulus amid the coronavirus outbreak.
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Gold Price Technical Outlook
Gold price is 0.94% higher at $1603.80 close to daily highs, amid increased volatility in the markets due to the coronavirus outbreak. The momentum for the gold price is positive, while if the price manages to close today above the ascending trendline might initiate another leg higher.
On the upside, the first resistance for gold price stands at $1605.40 the daily high. A credible break above might open the way for the next resistance at $1611 the high from yesterday’s trading session. In case of a bullish breakout the next obstacle stands at $1649 the high from February 28th.
On the other side, first support for gold price stands at $1585.30 the daily low. The next support for gold will be met at $1575 the low from March 2. If the price breaks below, sellers will target the 50-day moving average at $1569.
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