Gold Supported Over Risk-Off Market Sentiment – Apple Warned China
The safe haven metal prices recovered mainly due to renewed market risk-off sentiment in the wake of escalating coronavirus fears. The market risk-tone is getting worse day-by-day, mainly due to the coronavirus fears, which provides support to gold and the greenback as a safe haven currency. Despite decreasing the pace of the death toll and infected peoples in China, the uncertainty and fears still surround the market.
The US stock futures dropped from record levels after tech giant Apple’s statement that they will not reach the targeted revenue for the March quarter mainly due to slower iPhone production and weaker demand in China in the wake of coronavirus.
At the Sino-US trade front, news came after a long time that China will grant tariff exemptions on 696 additional US goods, including key agricultural and energy products such as pork, beef, soybeans, liquefied natural gas, and crude oil.
It is worth mentioning that the news came one month after China and Washington signed the phase one trade deal. Under the agreement, China will increase its purchases of goods and services from the US by $200 billion over the next two years. Asian stocks dropped today, with Apple (NASDAQ: AAPL) suppliers’ poor performance after the tech giant gave a revenue warning overnight.
Daily Support and Resistance
S1 1572.32
S2 1576.72
S3 1578.94
Pivot Point 1581.11
R1 1583.33
R2 1585.51
R3 1589.9
GOLD has hit the 1,588 target mark, and it’s heading towards 1,592 level. For the moment, the XAU/USD pair may retrace back towards 1,584 level, but the upwards trendline may extend support here. Chances of a bullish bias remain strong due to coronavirus and the violation of resistance level of 1,584, which now opens further room for buying until 1,588 and 1,592. Good luck.
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