· Gold prices rose on Wednesday, hovering near a seven-week high hit earlier this week, as a soggy dollar and a retreat in U.S. Treasury yields lifted demand for the safe-haven metal.
· Spot gold was up 0.2% at $1,779.85 per ounce by 0205 GMT, after hitting its highest since Feb. 25 at $1,789.77 on Monday.
· U.S. gold futures edged 0.2% higher to $1,781.60 per ounce.
· “The U.S. dollar had edged lower this morning, supporting prices, with gold’s upward momentum from overnight continuing in Asia,” OANDA senior market analyst Jeffrey Halley said.
· “Providing that U.S. 10-year yields remain softer, gold appears to be gathering strength for a test of the 100-day moving average at $1,802 an ounce in the days ahead.”
· “In the big picture, gold prices are moving higher from lows established below $1,700 as the dollar remains weak and U.S. yields declined in the face of a new driver - geopolitics,” Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.
· “With a delay due to the accelerating spread of the coronavirus, gold traders would expect the Fed and other central bankers to remain dovish.”
· Gold Price Forecast: XAU/USD likely to face stiff resistance near $1795-$1800, focus on yields
Further up, the horizontal 100-day SMA at $1804 could be probed.
Alternatively, a four-hourly candlestick close below the 21-SMA will recall the sellers.
The confluence of the wedge support and 50-SMA at $1757 could emerge as strong support.
· Spot gold targets $1,803-$1,818 range
A double-bottom forming around $1,677 indicates a further rise towards $1,852.
Spot gold may break a resistance at $1,785 per ounce and rise towards the range of $1,803-$1,818.
The correction triggered by this resistance has been almost reversed.
The reversal signals a continuation of the wave c from $1,722.94.
This wave is expected to travel to $1,803. Once the metal rises to this level, it is likely to extend its gains to $1,818. Support is at $1,763, a break below which could cause a fall limited to $1,753.
A double-bottom forming around $1,677 indicates a further rise towards $1,852.
On the daily chart, gold climbed above a resistance at $1,776 again. It is poised to test the next resistance at $1,799. A falling channel suggests a higher target around $1,828.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
· Among other precious metals, silver was up 0.9% at $26.09 per ounce. Palladium gained 0.9% to $2,786.94, while platinum rose 1% to $1,199.03.
Reference: Reuters, FXStreet, Brecoder
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