- Summary:
- The gold price holds close to seven-year highs while yesterday crossed the high from January after the U.S. killed a top Iranian general. Coronavirus
The gold price holds close to seven-year highs while yesterday crossed the high from January after the U.S. killed a top Iranian general. Coronavirus outbreak is gold positive as the uncertainty and the negative economic impact shifts investors attention to safe-haven assets. Earlier today new measures from PBOC failed to calm investors at least for now. PBOC cut the benchmark one-year prime rate by 10 bps, and the five-year prime rate by 5 bps. Yesterday the People’s Bank of China cut the one-year medium-term lending rate to 3.15% from 3.25%.
As of writing the PBOC failed to impress investors, the gold price is 0.08% lower at $169.45. Silver price is 0.93% lower at 18.23 as investors are taking some profits off the table after the recent rally.
Read our Best Trading Ideas for 2020.
Gold Price Technical Analysis
Gold price trades close to seven-year highs as the bullish momentum which started in mid December is intact. Positive bias for the precious metal will hold as long as the price holds above the $1600 mark.
On the upside, first resistance for gold price stands at $1612.85 the daily and seven years high. A break above might test next resistance at $1616 the high from March 22, 2013.
On the downside, first support for gold stands at $1604.06 the daily low. The next support area would be met at $1599.47 the low from yesterday’s trading session. If the gold price breaks below, sellers will target the low from February 18th at $1,580.