OctaFX | OctaFX Forex Broker
Open trading account
Back

Gold Price Analysis: Bears testing $1500 support, down over 1%

  • Risk-off returns, gold sold in need for cash amid coronavirus chaos.
  • US dollar stalls its broad corrective slide, funding stress back?
  • Broad market sell-off amid coronavirus to keep the upside in check.

Gold (futures on Comex) extends the Asian descent into Europe, as the bears test the 1500 demand area amid a fresh risk-aversion wave hitting the markets.

The yellow-metal stalled its overnight bounce just shy of the 1550 mark and resumed its recent bearish momentum, as the sentiment turned sour amid a rising number of coronavirus cases globally.

Meanwhile escalating concerns over the economic impact of the pandemic also dampened the investors' sentiment, as they liquidated their positions in gold once again in exchange for cash so as to cover the losses incurred from the global equities sell-off.

Further, the US dollar stalled its corrective slide across its main competitors, which also collaborates with the latest leg down in gold. The US dollar index hit a fresh one-month high at 99.82 on Tuesday, as the demand for the most liquid currency shot up in times of the coronavirus chaos. The spot now trades at 99.33, having bounced-off a daily low of 99.16.

Despite the global economic stimulus measures deployed, the gold bulls failed to find any reprieve, as liquidity crunch continues to underpin the greenback and keep the yellow metal pressured. Focus remains on the USD dynamics and risk trends amid incoming virus headlines for fresh directives.

Gold technical levels to watch

 

GBP/USD is now looking to 1.1960 – UOB

In light of the recent price action, Cable could now attempt a move to 1.1960, suggested FX Strategists at UOB Group. Key Quotes 24-hour view: “We hig
Read more Previous

Forex Today: Dollar takes a partial breather as stimulus seems insufficient, 20% unemployment feared

Here is what you need to know on Wednesday, March 18: Asian stocks and futures on European and US stocks are down after "Turnaround Tuesday" which has
Read more Next
Start livechat