The recovery of the risk-on scenario pulled up stocks while investors reduced their positions on gold. The selloff seen on the gold market found a solid support level at $1,550 and prices are rebounding after this strong correction.
Technically the short-term trend remains weak, as the price has broken a different support level before reaching $1,550. The area from $1,565 to $1,572 now represents the first resistance levels for bullion, while a fall below $1,550 would open space for further corrections.
Despite the return of a risk-on scenario, WTI fell below $50. This is confirming that investors, although seeing less risk from the coronavirus, still think that there will be a significant impact on the Chinese and global demand for oil and this is the main reason why the price of oil was unable to rebound despite renewed market optimism.
