Gold price started lower the Monday session after the precious metal registered one of the best weeks with gains over 12% as investors fears about the global recession shift attention to safe-haven assets. As the coronavirus cases rise across the globe and the death toll has surpassed 150,000, the good news is coming out of Italy as the number of deaths fell for the second consecutive day.
Gold hit seven-year highs as investors run for cover in gold the first weeks of the coronavirus crisis, but as the sell-off in stocks accelerated they started the liquidation of gold also.
Gold price lost over 14% from its highs in early March 9th, as traders move to cash amid the USD funding crunch, and managed to rebound the previous week.
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Gold Price Support and Resistance
Gold price is 0.37% lower on Monday European morning session, as traders booking some profits after the previous week rally. The correction from the $1702 March 9th highs stalled at $1455, on March 23th and managed to bounce. The technical outlook is bullish for gold, as long as the precious metal trades above the 500-day moving average.
On the downside, initial support stands at $1602, the daily low. If the gold price moves below, the next support area will be met at $1588 the 50-day moving average. Below that support level, bears will target the low from March 23, at $1,551.
On the other side, the first resistance for gold stands at $1602 the daily top. Next obstacle stands at $1642 the high from March 23. A credible break above might test $1671 the high from March 11.
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