Precious metal yesterday was unable to update the weekly highs of trading. The day was closed with a slight decline amid rising US stock indexes. Experts note that the increase in the indices could be related to statements by the World Health Organization, which recognized the seriousness of the coronavirus and declared the outbreak an emergency of international importance, but did not impose restrictions on international trade and travel.
Today, gold is trading steadily, while maintaining good opportunities for the resumption of upward movement. Investors remain focused on news related to the spread of coronavirus. According to the latest information, the number of infected is approaching the mark of 10 thousand people. 213 people died from the virus. Experts believe that the damage from the new virus to the Chinese economy will be more significant than from the outbreak of SARS in 2003. Goldman Sachs experts believe that China's GDP growth in the 4th quarter may slow down to 4.0%.
On the chart, the price is near the support of 1569.50. From this level, we can expect the resumption of upward movement. The immediate target for buyers is the level of 1585.00.
Resistance Levels: 1585.00, 1600.00, 1611.00;
Support Levels: 1569.50, 1550.00, 1542.00.
The main scenario is an increase to 1585.00.
An alternative scenario is a breakdown of intraday support at 1569.50 and a decline to 1550.00.
The fundamental background is moderately positive. The price is near the support level of 1569.50 from which short-term longs can be considered.