Gold, the sell-off victim!


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Gold analysis – 17 March 2020

By: Ahura Chalki

Gold also lost the ground, as almost every symbol and Stock Exchanges, all over the globe. Yesterday Dow 30, eased almost 13%, S&P 500 lost 12% and NASDAQ also down by 12.32%. Asian season today started along with downtrend expectation in the Asian stock, while it was growing and at the time of writing, Nikkei & Hang Seng both gained about 0.75%, and Shanghai is trading with no loss, in the same price of opening.

On the other hand, economic data from China and the United States, published by yesterday and Japan earlier today, confirmed that the first three biggest economies of the globe, have been hit by Covid-19 negative impacts.

Risk aversion, despite all, sell-off, in the markets, can help the yellow metal to control its bears, if Gold can manage to stay stable above the psychological level of $1500. However, though better to review other analysts outlooks as well. (From Bloomberg)

“The markets are in panic mode,” Alexander Zumpfe, a trader at Heraeus Metals Germany told Bloomberg. “The interest rate cut by the U.S. Federal Reserve has not changed this – on the contrary.”

Although prices for the yellow metal were expected to recover with the economic turbulence, investors are parting with even safe-haven commodities.

“The traditional rules are out of order and there is nothing which can be classified as safe haven — not even gold,” Naeem Aslam, chief market analyst at Ava Trade told

Gold technical analysis:

Gold is trading exactly at the 200 D-MA, sitting at $1497, breaching under this level, can hit that more, up to 2019 low, around $1,445 while returning back, with stable trading above that, 100-day SMA around $1,535 acts as the immediate upside barrier and next target.

Pivot point: 1513.27

Resistance levels: 1524.91 / 1536.41 / 1582.40

Support levels: 1502.00 / 1490.42 / 1478.93 / 1444.44

Today, the expected trading range is between 1536.41 support and 1478.93 resistance.

Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.


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