Risk-off sentiment returned in full force at the start of the New York session today, allowing the gold price to erase the $10 decline it suffered in the London session to post new multi-year highs. Gold price has surged to 1796.37, a high not seen since 2012, after new coronavirus jitters hot the markets. Adding to the safe-haven demand is the Australian government’s consideration of a new 4-week lockdown on Melbourne.
The latest statistics from the US points to a 16% increase in the number of new confirmed coronavirus cases in Floriday. There is also a rise of 6.8% in the number of coronavirus hospitalizations in Texas. Arizona is also seeing a 4-digit Analysts have warned that if not controlled, the second wave of coronavirus infections could kill off any progress made on the economic front across the globe. Gold price is now trading at 1794.87, an intraday increase of 0.67%.
Technical Outlook for Gold Price
Gold price action on the XAUUSD chart showed gold price bouncing strongly from the 10-day moving average, where this moving average line interacts with the lower border of the ascending channel that has encapsulated price action for a month now. The daily candle has breached the 1788.90 resistance, but has not yet attained the price filter that is required to confirm a breakout.
A confirmed break above this level allows the gold price to target the 1802.75 resistance, last seen in November 2011. If this resistance gives way on account of continued advance, we could see gold price targeting 1826.44.