GOLD (XAU/USD) - SWING TRADE
Over the last couple of weeks, safe haven assets, particularly Gold, have been selling off due to a mass liquidation of all asset groups following the U.S equities significant reaction to the coronavirus pandemic. Although Gold is safe haven which acts as a shield in times of weak equities market, participants tend to liquidate across the board to either raise cash for margin calls in equities or move their money into the U.S dollar for safety.
Despite Gold closing higher last week on Friday, it still closed lower for the second week in a row. However, I still am bullish on Gold since I do believe that Gold's intrinsic safety as a safe haven asset will make a comeback and this will take Gold back to the $1700/OZ region.
Gold had a significant rise on Friday which appears to be continuing into this week. Safe haven buying offset a rush for cash in the midst of fear over the economic impact from the coronavirus. As mentioned before, the main reason for the sharp decline was due to the fact that investors sold the metal to meet margin calls in other assets.
On a technical perspective, Gold has found buying support at $1455/OZ and has been trading above despite two attempts to break this low.
GOLD SPOT/ U.S DOLLAR (2 HOUR)
The chart above has marked out key zones to be aware of.