Gold is currently waiting for news about the coronavirus’ expansion across Europe and the US. Investors have taken up a position of risk aversion and giving a close read to the containment plans of governments and international agencies.
This week, the yellow metal has managed to stop the sell-off just above last week’s close, after a strong rally to $1,689. The confirmation of this support indicates that sentiment towards gold is still positive and that the hypothesis of a long-term upward trend remains valid. As the closing bell of Friday’s market approaches, tension in the markets will rise, with more investors deciding to close positions in the American futures and stock market as a form of protection against a possible worsening of the situation during the weekend. Gold can therefore once again experience a new rally at the market close, benefitting from the liquidity of investors moving their capital to safer assets such as gold and treasury bonds.
