Gold price managed to rebound today and reverse yesterday’s losses as the precious metal bounced from oversold levels. Gold is under selling pressure amid the global sell-off due to the coronavirus outbreak. Investors liquidate portfolios even safe-haven assets in the search for cash.
The monetary and fiscal stimulus by several central banks and governments around the world failed to calm markets as the USD funding crunch continues. The latest move came from Bank of England with a historic rate cut down to 0.1%. BOE also announced the increase of UK government and corporate bonds holdings by £200 billion.
Read our Best Trading Ideas for 2020.
Gold Price Resistance and Support
Gold price is 1.91% higher today as the correction from the $1702 February highs stalled at 1455 the November lows. The technical picture is negative for the precious metal, but a close above the 200-day moving average might attract more bids.
On the upside, the first resistance for XAUUSD stands at $1505 the daily high. Next obstacle stands at $1535 the 100-day moving average. A break above might test the next resistance at $1553 the top from March 17.
On the flip side, initial support stands at 1501 the 200-day moving average, while the daily low at $1455 will provide the next support area. If gold price breaks below, sellers will target the low from August 5th, 2019 low at $1,437.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.