Gold price is under selling pressure for one more day as the precious metal is also a victim of the global sell-off due to the coronavirus outbreak. Physical demand expectations continue to deteriorate while margin call in equities might have induced selling in gold in search for cash. The Fed cut interest rates by 100 basis points to 0.0% – 0.25% in an attempt to combat the coronavirus outbreak. Lower rates are gold favourable, but that is not the case in today’s markets.
Gold has lost over 14% since the high on March 6th, as investors running for cover in cash.
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Gold Price Technical Outlook
Gold price is 1.51% lower today as the correction continues for the sixth consecutive trading session. The technical outlook is bearish now for the precious metal as the price today breached the 200-day moving average, a move that might attract more sellers.
On the downside, initial support stands at $1481 the daily low. Next support for the gold price would be met at 1451, the low from yesterday’s trading session. If gold price breaks below, sellers will target the low from August 5, 2019 low at $1,437.
On the other hand, first resistance for gold stands at $1498 the 200-day moving average. Next hurdle stands at $1519 the daily high. A move above would open the way for the next resistance at $1534 the 100-day moving average.
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