On Friday gold is gradually recovering from the worst day in the US stock market history since 1987. Due to a general panic, the price of gold dipped by 4%.
On Friday the global stock market continues to fall. Heavy losses in the stock market led to a halt in trading on the Japanese Nikkei 225 and South Korean KOSPI. World indices moved to bearish territory. Even the FRS’ decision on an additional infusion of $1.5 trillion could not reassure investors.
Most experts believe that the decrease in gold prices amid a general panic was temporary. In the coming days, the asset will be able to restore previously lost positions, since in the current situation, gold remains the most reliable asset for protection against global risks.
Regarding the chart, bullish signals prevail. In the morning the price falsely broke through the level of 1563.00. This is a strong reversal signal within which we can expect growth of quotations to a minimum of around 1610.00. If this level is broken, the next target will be around 1635.00.
Resistance Levels: 1610.00, 1635.00, 1650.00;
Support Levels: 1563.00, 1550.00, 1542.00.
The main scenario - an increase towards 1610.00.
An alternative scenario - a breakdown of support at the level of 1563.00 and a decline towards 1535.00.
The fundamental outlook is moderately positive. We consider longs from the levels of 1578.00 and 1563.00.