Gold Price On Demand Amid Coronavirus Impact Fears
Gold price adding 0.51% at 1588.53 as investors shift to safe-haven assets after the revenue warning from Apple (AAPL). The negative impact of coronavirus will come in the headlines as soon as data for January is reported. The coronavirus death toll hit 1900 while there are over 72430 confirmed cases today.
Traders will need to pay attention to sectors and companies with significant exposure to the Chinese economy. PBOC is working on to limit the economic impact from the coronavirus spread cutting the interest rate on its medium-term loans. Any move that offsets the effect of virus helps investor sentiment and boosts demand for higher-risk assets.
Gold price is one of the winners from the coronavirus crisis. The uncertainty forms a bullish outlook with the precious metal making higher highs and higher lows in the last two weeks.
On the upside, the initial resistance for gold price stands at $1589.13 the daily high. A break above would test next resistance at $1593 the high from February 3. Above that level next resistance stands at $1611 the high from January 8.
On the downside, first support stands at $1582.62 the daily low. The next support for the gold price would be met at 1566 the low from February 13. If gold breach below that level, sellers will target the low from February 5 at $1,547.