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By: Ahura Chalki
Gold taking advantage of Coronavirus and ECB policy!
Gold getting supported as worries of spreading of the coronavirus affected on the stock markets and Bonds. Yesterday after that ECB left the rates unchanged, eyes turned mostly on monetary policy. In a press conference following the decision, ECB President Christine Laggard said rates will “remain at their present or lower levels until we have seen the inflation outlook robustly converge to a level sufficiently close to, but below 2% within our projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics” (CNBC). Right after that, the Euro felt to its seven weeks low and helped the Gold bulls. Until that, investors already were looking after Safe Havens, as worries surrounding the spread of the coronavirus led to weakness in the U.S. stock market and a fall in bond yields. For now, Gold still has its reasons for lifting up, to be on the safe side.
Gold technical analysis
Yesterday market closed above key level of $1562, while it could touch another key resistance at $1568, before closing lower. At the moment, Gold still trading above $1560, and technical indicators, supporting mostly the bulls, in both H1 and H4 charts. RSI moves above 53, while market volume also raised in the past two days, with EMA crossing strategy, which also supporting the bulls. However, Stochastic started signaling of correction, by cutting down the signal line by stochastic main line at 60. Key levels for more bulls, still sitting at $1562 and $1568, which will bring the $1600 on the play, and returning under $1552, with $1548 confirmation, can change the trend.
Pivot point: 1561.24
Resistance levels: 1570.77 / 1577.42
Support levels: 1554.59 / 1545.00
Today, the expected trading range is between 1554.59 support and 1570.77 resistance.
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