The yellow metal is ending the week with modest gains around $1,575.00 a troy ounce, recovering some of the ground it lost in the previous one. Valeria Bednarik, a Chief Analyst at FXStreet, sees the coronavirus as the reason for gold appetite.
“Gold retains its bullish stance in the long-term and according to the weekly chart. It continues to develop above bullish moving averages, with the 20 SMA at around 1,512 and the larger ones some $200 below the shorter. The Momentum indicator heads higher well into positive levels, while the RSI consolidates in overbought levels, indicating no selling interest.”
“Daily basis, however, spot gold offers a neutral stance. It has spent the week hovering around a flat 20 DMA. It seems that speculative interest feels comfortable holding on to its gold positions, but reluctant to add longs.”
“The Fibonacci retracement at 1,586 is the immediate resistance. Beyond this last, this year high at 1,611.33 is the next bullish target. Supports come at 1,560.00 and 1,547.40. The metal could turn bearish on a break below this last.”