Forex Market Analysis

GOLD: up to $1,600? – FBS

Key indicators: Performance in 2020: +4.6%, Last day range: $1,578 – $1,584, 52-week range: $1,265 – $1,612

Will gold rise back to $1,600? Gold trades at $1,585 per ounce – that’s almost as high as it was at the beginning of February, when the unfolding story of the Coronavirus was at the peak level of tension. Today, even with the number of new infection cases in the Hubei province decreasing compared to that of Monday, observers comment that the virus is far from being contained. China is on the way to compensate for the damaging effect of the outbreak. That supports AUD and NZD, slows down the flee-to-safe-haven momentum and improves an overall emotional state of the market. Strategically, however, that does not stop gold to keep rising. It will be of little surprise now if it finally gets back up to $1600. If the state of affairs continues the same as it is now for another week, this question most probably will be not “if” but “when”.

Technical levels: Resistance $1,595, Support $1,577

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