Forex News

XAU/USD Loses a Track of Support as it Plummets Below $1,600

Gold price has been eyeing lows at the end of the first quarter as the recession digs deeper and notably dipped below $1,600 in the trading hours, yesterday. The price accumulation has caught the yellow metal in the price range of $1,565 to $1,645 in the global markets. XAU/USD retains slight support from 200-day Moving Average while lacks 50-day MA support as the metal price plummeted below $1,600 after a week of resistance.

Gold Price Analysis

Taking a glance at a two-hourly price chart of XAU/USD, we see that the yellow metal has been a prey of price accumulation over the past 7 days. Amidst the ongoing economic crash, the Gold price tested support as low as $1,451 in the previous month as Coronavirus is growing and spreading at the speed of light. All the major investment avenues have been facing a massive sell-off as liquidity has turned up to be the king, and the safe haven has also seemed to lose its shine gradually.

The recent dip below $1,600 took the price of the yellow metal to nosedive below 50.0% Fib retracement level, which is again afloat above $1,585, at the press time.

As per the market volatility and current momentum, $1,575, i.e., the 200-day MA and $1,565, i.e., the intraday support, are the major prices to watch out for. The yellow metal is currently appearing bearish even after the technicals may draw a bullish divergence as it has rebounded from the intraday marked low.

Erica Lee

Erica is a finance professional who has over a decade of experience in the finance sector as a management consultant. After years of reporting on forex, stock markets, and finance, she now contributes her strong financial skills with the CoinNewsSpan team. Since 2014, she has been deeply involved in the blockchain and cryptocurrency space. She believes that blockchain technology has tremendous potential to make our lives better.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button