Gold Price Analysis: Violates key hurdle to hit 9-day high
- Gold has crossed the key Fibonacci hurdle at $1,564.
- A strong foothold above $1,564 needs to be established for stronger rally.
Gold crossed key Fibonacci hurdle a few minutes before press time and hit a nine-day high of $1,568 per Oz.
The metal picked up a bid near $1,560 and jumped above $1,564 - the 38.2% Fibonacci retracement of the pullback from $1,611 to $1,536.
If gold manages to establish a strong foothold above $1,564, the focus would shift to the next resistance lined up at $1,573 (50% Fibonacci retracement) and $1,580.
On the downside. a break below the ascending trendline drawn from Jan.14 and Jan. 17 lows is the level to beat for the bears. As of writing, the trendline support is located at $1,558.
Gold is currently changing hands around $1,565, representing a 0.32% gain on the day. Meanwhile, the S&P 500 futures and the Asian equities are flashing red.
Risk is being sold in Asia reportedly due to China's coronavirus outbreak. The flu that began in Wuhan, China, has spread to more than 200 people in what is just “the tip of the iceberg,” according to a Boston-area infectious disease doctor.
Further, Trump impeachment proceedings and renewed concerns about global growth following the International Monetary Fund's downward revision of growth forecasts could be pushing gold and other anti-risk assets higher.