On Wednesday, gold is increasing due to continuing concerns about the spread of coronavirus outside of China. The number of cases in South Korea, Italy, Iran and other countries continues to grow, which causes serious concern for representatives of international health organizations.
Stock markets were pressured quite heavily by statements of American health authorities who warned of the likelihood of a wider spread of coronavirus in the United States. According to them, all medical institutions are preparing for a possible pandemic, but so far it is difficult to say how great the danger to public health is.
Obviously, considering the above, the demand for protective assets, particularly gold, remains high.
Today, in the economic calendar, it is worth paying attention to the speech of the ECB President Christine Lagarde and the report on sales of new housing in the United States in January.
Having tested the support at the level of 1630.00, the price resumed its upward movement and today we can expect the development of this movement. The target for the bulls is the level of 1660.00.
Resistance Levels: 1660.00, 1680.00, 1700.00;
Support Levels: 1630.00, 1616.00, 1600.00.
The main scenario - an increase towards 1660.00.
An alternative scenario - a breakdown of support at the level of 1630.00 and a decline towards 1616.00.
The fundamental outlook is moderately positive. We consider longs near the level of 1630.00