Fears around the coronavirus persist and the yellow metal still may revisit seven-year highs. Expectations of U.S. rate cuts supported the spot yesterday. However, a rebound in U.S. stocks limited its upside.
The main scenario is a recovery move to 1660.
An alternative scenario assumes a return to 1630.
An approach to 1650 will attract buying interest and will send the rate to 1660.
We expect to see renewed bearish pressure and a move to 1630 after breaking 1640.