Gold price is constrained in a very narrow range today. The market is still focused on the spread of deadly coronavirus related news. According to WHO, the largest increase in the number of cases was recorded this Wednesday. A few Chinese media outlets reported that Abidol and Darunavir can suppress the virus. But at a press conference, WHO specialists ignored these reports, noting that at the moment there are no known effective therapeutic agents against this strain of the virus.
Amid the risks of further spread of the virus, which could cause significant damage to the Chinese economy, the demand for protective assets remains steadily high.
The main restraining factor for gold is the situation on stock exchanges and the dynamics of the USD movement. Major indices are still trading in the green zone. Investors' appetite for risk is spurred by quarterly reports and forecasts of major US companies.
There is no important news in the economic calendar today, therefore, the situation on the stock exchanges and geopolitical news will influence trading the most.
Regarding the chart, bulls continue to keep the price above the level of 1550.00, having formed a good base for a further retreat in the direction of the level of 1569.50. Accordingly, it will be possible to count on the resumption of the downward movement only after a breakdown of the mark of 1550.00.
Resistance Levels: 1569.50, 1585.00, 1600.00;
Support Levels: 1550.00, 1542.00, 1530.00.
The main scenario - an increase towards the level of 1569.50 and further downward movement.
An alternative scenario - a breakdown of support at the level of 1550.00 and a decline towards 1542.00.
The fundamental outlook is neutral. The chart demonstrates prerequisites for the pullback movement formation, but in the current situation, preference should still be given to shorts. Entry points should be sought near the level of 1569.50.