In the last few trading sessions volatility has slowed down on gold with the price consolidating just above $1,600 with stock markets also seemingly found more stability after their recent plunges. Despite this, uncertainty remains just around the corner as the impact of coronavirus on the global economy will be significant. The technical scenario remains unchanged as a fall below $1,590 would denote some weakness, while a clear surpass of $1,640 could open the doors for further recoveries. It will be interesting to see the reaction of gold once the risk off scenario returns to the markets, with potential space for more gains for bullion.
Oil price is attempting a difficult rebound with WTI climbing back above $21 after sinking to a 17-year-low of $19.40 yesterday evening. Rumours about talks between Putin and Trump, will include discussions on the oil price, are giving some hope to the barrel amid a backdrop of its dramatic performance YTD that shows a loss of 60% while a huge oversupply risk continues to dominate sentiment.
