The precious yellow metal bulls emerged under the $1,630 level yesterday after the bears weighed in on the market and posted an intraday low of $1,624 before staging a modest rebound.
Renewed talks in the market have turned their focus back to the U.S. Federal Reserve of likely cutting rate (or called, “protective rate cut”) due to the uncertainties of the economic fallout from the deadly coronavirus virus.
However, the rebound has put some confidence back into the bulls as spot gold prices gained on Wednesday.
Having hit a fresh seven-year high of $1,689 earlier this week, safe-haven demand remains the theme as the rapidly spreading coronavirus aggravated fears of an economic slowdown.
Due to the lack of the of confirmation on the shooting star candlestick posted three days ago, bulls will trend carefully into today’s session.
The shooting star candlestick is a chart formation consisting of a candlestick with a small real body, and a large upper shadow. The open, close, and low are near the low of the candlestick.
Since the rebound, at present, it is still too soon to call whether the $1,630 break is valid to any bearish call.
It now boils down to the $1,630 level, or a break to the upside at $1,657 to reinstate the upside target of $1,680-95.