Gold price started higher on Tuesday after yesterday’s sharp sell-off. Gold price dropped yesterday from $1627 down to $1575 after stronger than expected manufacturing PMI data from China. Relief packages from governments around the globe and Fed’s move to Fed to broaden the ability of central banks from other countries to access U.S. dollars during by allowing them to exchange their holdings of U.S. Treasury securities for dollar loans.
In Italy the number of new coronavirus cases, dropped at a two-week low, signalling that the coronavirus outbreak is starting to come under control as it prepares extra measures. Spain reported yesterday record deaths, but there are also some signs of stabilization.
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Gold Price Technical Evaluation
Gold price is 0.91% higher at $1588 in an attempt to recover some of yesterday’s heavy losses. The technical outlook is still positive for gold despite yesterday’s sell-off. If the gold price breaks today above the 50-day moving average might initiate another leg higher.
On the upside, the first resistance for gold stands at $1589 the daily top. Next hurdle stands at $1627 the high from yesterday’s trading session. A break above might test 1632 the high from March 30th.
On the flip side, initial support stands at 1560 the daily low. If the gold price moves below, the next support area will be met at 1544 the 100-day moving average. Below that support level, sellers will target the low from March 23rd session, at $1,551.
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