Market News & Analysis
Gold Hits 7 Year High, More Upside To Come?
Fiona Cincotta February 20, 2020 11:22 PM
Gold has advanced in tandem with rising fears over the impact of the coronavirus outbreak. Coronavirus has weighed on economic growth forecasts and stock prices alike in recent weeks, leaving investors in search of havens for gains.
Today news that the number of coronavirus cases in South Korea doubled and that two died onboard the Diamond Princess cruise ship rocked investor nerves. China posting a sharp drop in the number of new cases failed to ease fears, partly because of another change in diagnostic criteria which is creating a level of distrust surrounding the figures. China had just 394 new cases on Wednesday, down from 1749 the previous day. The total number of confirmed cases is at 74,576.
Levels to watch
Gold is trading at a 7 year high, up 0.6% today. It trades comfortably above its 50, 100 & 200 sma on the daily chart, with bullish momentum firmly intact. A break below the trend line around $1590 could negate the bullish trend, otherwise gold could advance towards $1650 (round number) and $1685 (high Feb 2013)
Immediate support can be seen at $1603 (today’s low) prior to $1580 (low 18th Feb & trend line support). This could open the doors to $1550 (low 4th Feb & trend line support).
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.