Gold price resumed its intraday surge just as the New York session opened for business, buoyed by increasing safe-haven demand as U.S. coronavirus cases continue to spike with no signs of letting up. The gold price action on the XAUUSD chart has taken out the November 2011 highs and is well into past the $1810 mark. The asset is receiving substantial bids and looks likely to continue its intraday surge.
The U.S. coronavirus case count topped the 3 million mark this Tuesday. Recall that in one of my pieces for last week, I had reported on the concerns that analysts had about the impact of the U.S. Independence holiday weekends on the coronavirus numbers, with beaches and parties scheduled for the celebrations. It would appear those fears are being confirmed with each passing day, as more states continue to report a record number of new infections. Some states are also reporting that their intensive care facilities are getting overwhelmed.
Possible extension of stimulus by the Fed in response to the growing coronavirus cases is also weighing on the greenback and helping to push safe-haven demand.
Gold is now trading at 1815.80.
Outlook for Gold Price
Short-term plays on the 1-hour chart show the XAUUSD pair breaching the R2 resistance pivot at the 1812.39 price level. The R1 pivot at 1803.57 has provided support for intraday price action, allowing the gold price to breach the R2 pivot point. The gold price intraday candles need to close by a 1% penetration above this pivot to confirm the break of R2. This could then allow the XAUUSD pair to target the R3 pivot line at 1827.46 as the near-term target.
On the flip side, failure to sustain the break of R2 above today’s intraday high at 1815.24 could allow for a pullback towards the R1 pivot. Intraday Fibonacci retracement plots indicate the central pivot point as a possible downside target for such a pullback. This pivot is located at the 61.8% retracement level (1788.54). A further decline below this area targets 1774.50 (intraday high of 29 June and low of 6/7 July). Below this area, 1758.58 could become another downside target, as this price level was the site of previous intraday bounces on 1 and 2 July.Apple 5G iPhone shipments in 2020 may come weaker than expected, according to some analysts they estimate about 15 to 20 million units this year compared to a prior estimate of 30 to 40 million. TESLA Returns Above $1000 On Elon Musk’s Break-Even Optimism. Micron trades over 5% higher in premarket after the announcement of better-than-expected results. Micron reported a profit of 0.82/share, topping expectations of 0.77. The Revenues rose to $5.44 billion, also beating the forecasts of $5.31 billion.
Dow Jones futures are 0.25% lower at 25,434. The S&P 500 futures are 0.18% lower at 3,042, while Nasdaq futures are 0.07% lower at 9,966.
Gold Price Hourly Chart