Gold Prices Climbed Up Again – the Opportunity to Ascend Continues
Gold prices rose again in Thursday’s Asia Pacific session. A surge in coronavirus cases broke hopes of prevention of the outbreak. Hubei province recorded 14,840 new cases and 242 further deaths as of Wednesday.
Gold settled at $1,566 at the beginning of the day. Losses of China negatively affects the world’s economy. Airlines, restaurants, and the tourism sector stopped operating. International mail joined their list as well. Most of the airlines suspended their flights to China. World Postal Union said the suspension of flights would affect mail delivery in the foreseeable future.
The price of gold may be subject to temporary profit-taking sales. The most recent resistance levels for Gold are 1574, 1589, and 1611, correspondingly. A reversal of the trend can only occur when the price moves towards the support of $ 1530. Otherwise, the trend will continue to rise.
Recession Fears Move the metal prices
Federal Reserve Chair Jerome Powell stressed the Federal Reserve is observing events caused by the coronavirus. He remained upbeat on the US economic outlook. Despite having talked about the potential threat that the virus could lead to turmoil in China, the US economy is going through a good time, said Powell in front of the Financial Services Committee of the US House of Representatives.
FX Empire, a leading financial portal, posted what is moving gold prices is not the coronavirus, but the likelihood of a recession. If the coronavirus situation gets worse, it will slow down China’s economic growth. It is something that sooner or later will end up affecting the rest of the world. If that happens, the chances of a global recession will increase. It could lead central banks to make decisions driving up gold prices. Analysts are indeed indicating the Chinese economy is weakening. But for now, there is no talk of a recession. Regarding the fact, Gold will have a hard time sustaining any rise until the downturn happens.
China’s losses from coronavirus so far reached 1,369 confirmed deaths and more than 60,393 infected cases. The virus spread in more than 20 countries in the world besides China, the source of the epidemic.
Zhong Nanshan, China’s most prestigious medical advisor on the coronavirus outbreak, hopes the epidemic may end at some date close to April. To keep in mind, the epidemiologist had already prematurely predicted a peak of the disease.
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