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By: Ahura Chalki
Struggling to raise more, needs bankers’ signal?
Gold had a vert volatility week, as all other symbols had last week, which was the worse week in the financial markets since 2008’s crises. The market prediction was hard, almost impossible since the market was changing every second, reacting to different news from COVID-19 headline, as well as economic news, since last week we had first economic data, affected by the virus. Still, Coronavirus headline moves the market with first death in Washington State in the United States. By new countries involving in the list of infected areas, BBC reported from trusted sources that there are probably more than 1,500 infected in Washington and the spreading of the virus started since 6 weeks ago.
As I mentioned last week, this is a special situation and eyes will be on Central banks to see the reaction and policies, as well as new rate cuts and other economic stimuli. Since market pricing more than ever on FED rate cut, even before the coming meeting on 18 March, it pushed the Gold price lower last Friday, before the market close.
For the week ahead, still, investors will check more the economic data, especially from China and the US and waiting to see the final response of FED.
For now and for today, since the worries from the virus are there and earlier Caixin Manufacturing PMI was less than the prediction for February, as many was expecting that, Gold supposed to stay on bid, while we have to check more PMI data from the EU and the US, coming today, negative data will support the market bulls as positive can react as a break over there.
Gold technical analysis:
In the H1 charts, technical indicators have mixed-signals, trying to enter the positive area. RSI moves at 50, Stochastic trying to stay in the overbought area, and CCI just could move above 100 level. $1590 and $1625 (50 & 200 H-MA) are key support and resistance.
Pivot point: 1594.43
Resistance levels: 1626.00 / 1676.71
Support levels: 1543.00 / 1512.00
Today, the expected trading range is between 1543 support and 1626 resistance.
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