Gold Price News and Forecast: XAU/USD peeks Above $1,700 amid Coronavirus Fears and Market Turmoil

Gold Price News and Forecast: XAU/USD peeks Above $1,700 amid Coronavirus Fears and Market Turmoil

Gold: Precious metal rally here to stay?

Amid increased global economic stimulus expectations, in a bid to tackle the coronavirus impact, the upside momentum in the precious metal, gold, remains intact, analysts at TD Securities (TDS) cited in its CTA Position Tracker.

Key quotes: "Gold is holding at higher levels as extended speculative positioning has been harder to shakeout with dips becoming shallower, while ETF holdings have also surged to all time highs in recent days. While short-term runs to liquidity remain a risk, further rate cuts and stimulus measures globally offer fundamental backing, suggesting the precious metals rally is here to stay."

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Gold Peeks Above $1,700 amid Coronavirus Fears and Market Turmoil

On Sunday, Italy registered a huge jump in new cases of the COVID-19, the stock market plunged, while the oil market crashed. Tuesday morning, and Italy is on lockdown. Meanwhile, gold jumped above $1,700. What’s next for the yellow metal? Gold Jumps Above $1,700

Last week, I wrote that: "From the fundamental point of view, the environment of fear, ultra low interest rates, weak equity markets and elevated stock market volatility should be positive for the yellow metal (…) the good news is that the markets expect further Fed’s interest rate cuts on the way – it lays the foundation for future gains in the gold market."

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Source: FxStreet

 

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