On Thursday in Asia, the price of gold grew again amid concerns over the spread of coronavirus around the world. Recently, the United States confirmed the first case of transmission of the virus from person to person within the country. Prior to this, all cases of infection were recorded in relation to people who visited China. According to the Center for Disease Control and Prevention (CDC), this case may serve as the beginning of the spread of the disease in the United States, since the source of infection is unknown and not localized. The news came a few hours after President Donald Trump announced that the risk of contracting the virus for Americans is low.
Considering the above, Goldman Sachs Group specialists raised their forecast for gold to $1800 per ounce. In their opinion, if the virus cannot be stopped in the first quarter, after 3 months the cost of gold will rise to $1800. This is a major protection asset for investors.
In addition to news related to the spread of coronavirus, today investors will closely monitor economic statistics from the United States, which will publish data on orders for durable goods, GDP growth rate in the 4th quarter and the index of incomplete sales in the real estate market.
Bullish signals prevail on the chart. Having formed support at 1630.00, the price resumed its upward movement and is now approaching the mark of 1660.00. In case of breakdown of this level, the following targets for buyers will be the levels of 1680.00 and 1700.00.
Resistance Levels: 1660.00, 1680.00, 1700.00;
Support Levels: 1630.00, 1616.00, 1600.00.
The main scenario - an increase towards 1660.00.
An alternative scenario - a decline towards 1630.00.
The fundamental outlook is moderately positive. We consider longs near the level of 1630.00