The gold price rebounds today after yesterday’s profit-taking after making fresh nine-year highs. Investors are moving to safe-haven assets amid the coronavirus outbreak and the impact on the global economy. The panic in the markets increases the possibility of more rate cuts from the central banks around the globe.
PBOC is committed to limiting the economic impact from the coronavirus spread cutting the interest rate on its medium-term loans. The move didn’t calm traders who are still looking for safe-haven assets such as gold and silver. Any step that offsets the effect of coronavirus helps investor sentiment and boosts demand for riskier assets.
Gold price adds 0.71% at $1646.75 recovering some of yesterday’s sharp losses. The gold technical outlook is clearly bullish as long as the price holds above the $1600 mark. The developments around the coronavirus crisis will be the main driver of the gold price in the upcoming weeks.
On the upside, the first resistance for gold price stands at $1647.93 the daily high. A credible break above might open the way for the next resistance at $1663 the high from yesterday’s trading session. More offers would be met at $1689 the nine-year highs.
On the flip side, first support for gold stands at $1634.50 the daily low. The next support will be met at $1626 the low from yesterday’s trading session. If the gold price breaks below, bears will target the low from February 21, at $1,618.