When we look at the chart above – 60 Minute Time Frame -, we will find Gold – XAUUSD – has been trading in a sideways range since late March, as the price movement of gold is trading between the horizontal resistance level at 1,638.63 and the horizontal support level at 1,610.61.
It seems gold has lost the cashflow since late March, even though the current circumstances, which gold should be active as a safe haven with the Coronavirus epidemic spreading around the world, which raises the questions of investors and traders.
- Gold is trading in a sideways range since March 20.
- The horizontal resistance level is 1,638.63.
- The horizontal support level is 1,610.61.
- If the price movement of gold breaks the horizontal support level, it will be a negative sign, and therefore we are expected to witness further decline.
- If the gold price bounces back from the horizontal support level, it is expected that the gold will head to test the horizontal resistance level.
- If the horizontal resistance level is breached, it will be a positive sign for gold.
- Coronavirus seems to have changed the rules of the game known to global financial and stock market participants, as investors and traders prefer to keep cash in their hands rather than investing in safe havens.
- The stimulus packages launched by the US Federal Reserve since the beginning of the Coruna pandemic crisis in the United States succeeded in directing some cash flows somewhat towards stock markets instead of gold as a safe haven for investment under the current circumstances.