The gold price jumps above $1685 as investors are looking for cover in safe-haven assets such as gold and Japanese Yen. Coronavirus confirmed cases continue to rise outside China, with investors trying to estimate the economic impact in the global economy.
Gold price is also supported by the emergency interest rate cut by the Fed, earlier this week by 50 basis points. Investors expect and other central banks around the globe to proceed with interest rates cuts and monetary stimulus that will be gold positive, as the lower rates reduce the opportunity cost of holding non–yielding gold in a portfolio.
Gold price is 0.72% higher at $1684.03, as the positive momentum drives the price up to seven years high. Gold price managed to return above the rising trendline this week, and the rally accelerated amid the turbulence in stock markets.
On the upside, resistance for gold seen at $1689.93 the daily high. A move above might open the way for the next resistance at $1696 the high from January 18th 2013. In case of a bullish breakout, the next obstacle stands at $1719 the high from December 11th, 2012.
On the other side, first support for gold stands at $1667.79 the daily low. The next support for the gold price will be met at $1636 the low from March 5th. If the price breaks below, sellers will target the 50-day moving average at $1580.44.