Gold Hits 7 Year High, More Upside To Come?
Fiona Cincotta February 20, 2020 3:22 PM
Gold has advanced in tandem with rising fears over the impact of the coronavirus outbreak. Coronavirus has weighed on economic growth forecasts and stock prices alike in recent weeks, leaving investors in search of havens for gains.
Today news that the number of coronavirus cases in South Korea doubled and that two died onboard the Diamond Princess cruise ship rocked investor nerves. China posting a sharp drop in the number of new cases failed to ease fears, partly because of another change in diagnostic criteria which is creating a level of distrust surrounding the figures. China had just 394 new cases on Wednesday, down from 1749 the previous day. The total number of confirmed cases is at 74,576.
Levels to watch
Gold is trading at a 7 year high, up 0.6% today. It trades comfortably above its 50, 100 & 200 sma on the daily chart, with bullish momentum firmly intact. A break below the trend line around $1590 could negate the bullish trend, otherwise gold could advance towards $1650 (round number) and $1685 (high Feb 2013)
Immediate support can be seen at $1603 (today’s low) prior to $1580 (low 18th Feb & trend line support). This could open the doors to $1550 (low 4th Feb & trend line support).
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.