EUR/JPY rebounded from the 123.00 level on the H4. The pair formed a “piercing line” pattern.
GOLD: up to $1,600?
Information is not investment advice
Performance in 2020: +4.6%
Last day range: $1,578 - $1,584
52-week range: $1,265 - $1,612
Will gold rise back to $1,600?
Gold trades at $1,585 per ounce – that’s almost as high as it was at the beginning of February, when the unfolding story of the Coronavirus was at the peak level of tension. Today, even with the number of new infection cases in the Hubei province decreasing compared to that of Monday, observers comment that the virus is far from being contained. China is on the way to compensate for the damaging effect of the outbreak. That supports AUD and NZD, slows down the flee-to-safe-haven momentum and improves an overall emotional state of the market. Strategically, however, that does not stop gold to keep rising. It will be of little surprise now if it finally gets back up to $1600. If the state of affairs continues the same as it is now for another week, this question most probably will be not “if” but “when”.
NZD/CAD has reached a 200-week MA (0.8950) and formed a “shooting star” candlestick on the D1. On the H4, we see a lower high.
XAU/USD has moved this week in line with its short-term uptrend and the overall long-term uptrend reaching $1 865.
China arrested Jimmy Lai, one of Hong Kong’s richest and best-known publishers, on suspicion of collusion with foreign agents.
Looking ahead, highlights from macroeconomic calendar include EZ Sentiment Index and Fed’s Evans speech who is a Fed non-voter. Rise in US-China tensions (WeChat specifically) sends US dollar higher.
US stocks are set to open lower Friday, with investors worry over rising tensions between the US and China, deadlock over the next virus relief bill and possible disappointments from the key monthly employment report.