There is almost only one big event on the stage of Forex - Coronavirus. How will currencies and commodities respond?
Gold has slumped, now in correction
Information is not investment advice
During Thursday, gold has dropped to the level of 1465.00, unseen for more than a month. On the H4 chart of XAU/USD, we see it is just one step away from the strong support level of 1462.00. The main factor driving the depreciation of the precious metal is better prospects of the global economic outlook. The China-US trade deal is nearing, and the two countries agreed to roll back tariffs mutually. Consequently, gold has suffered due to a potential drop in demand because of clearer global economic perspectives. The bears would use this as an excellent opportunity. However, Thursday evening and today morning show correction in the price. At the same time, the RSI indicator is inching into the oversold level of 30% bottom-up. So watch out – there may be an interesting opportunity for the bulls, with the closest resistance levels of 1484.14, 1491.74 and 1495.87 on their way.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
The Royal Bank of New Zealand held the interest rate at 1% today. As a result, the NZD rose by 50 pips!
Coronavirus pushse gold and currencies to where they have not been for years. What next?
The United States will publish its flash manufacturing PMI at 16:45 MT time on February 21.