FxWirePro: Coronavirus and its impact on Gold

The year 2020 has been a very bad year for Asian countries until now, especially China due to an outbreak of coronavirus. The total number of death has increased to 500 with no symptoms of a slowdown. According to China's health commission, nearly 65 people have died yesterday and the number infected rose by 3887 to 24234. Most of the death has been from Wuhan and province of Hubei. The spread of various to more than 23 countries will affect the global economy, demand for Safe-haven assets will increase.

The yellow metal hits fresh 6-year high on Jan 8th, 2020, consolidating from that level. It hits low of $1536 and is currently trading around $1559.

US 10-year bond yield is trading weak for the past 1-month and lost more than 20% from high of 1.878%. The spread between US 10-year and 3-month has inverted once again the previous week.

The near term resistance is around $1563, any break over targets $1576/$1592. Primary trend continuation only above $1611.On the flip side, the immediate support is at $1545 and any break will drag the gold underneath till $1536.Extreme bearishness only under $1535.

It is good to buy on dips around $1550 with SL $1535 for the TP of $1600/$1611.