Gold: February 21 review
Yellow metal (Gold) made a high @1643.95+ range today and made 7 years high due to Coronavirs fears globally. And gold prices have boosted more than 7% so far this year due to this type of economic situations.
Safe-haven demand like Gold and Silver prices edged up today as the spread of Coronavirus fears globally.
The decision came as a new Coronavirus outbreak, more than 75000+ affected and 2100+ people’s died in China due to coronavirus. And it will affect widespread all over the globe. and more than 26 died in outside of China.
After signed phase one trade deal between US-China in last month, Chinese reports on last Monday that they will grant exemption tariffs to the US for energy and agriculture sectors.
Before US open, gold futures, April contract traded $1638.75 range, up +1.12% at early US hours.
US, Crude Oil WTI, prices made a high $54.23 range yesterday after API reported that made a bigger-than-expected crude oil inventory. Crude prices were also raised more than 10% so far from made a $53.11 a barrel on Feb.10 bottom on last week.
All Asian and European stocks futures traded flat to positive today.
By 08.17 AM ET, Dow 30 futures, march contract traded -85 points down, -0.29% down.
Gold and US Dollar prices should trade major effect at this type of Global tensions and uncertainty.
US Dollar Index futures, March contract made a two years high $99.817 range yesterday, and traded $99.655 range, down -0.13% against all baskets of major currencies.
Before the US open, we should expect profit booking in hedge funds like Gold and Silver.
Intraday and weekly strategy for Gold is given below.
Entry point – $1643.00 – $1645.00 range
And keep R1 $1655.90
And wait S1 $1629.50
And wait S2 $1626.00
And wait S3 $1619.70