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News and Data:

 

  • February 13: USD CPI m/m 0.1% vs 0.2% expected
  • February 13: USD Core CPI m/m 0.2% vs 0.2% expected
  • February 14: USD Core Retail Sales m/m 0.3% vs 0.03% expected
  • February 14: USD Retail Sales m/m 0.3% vs 0.3 expected
  • February 14: USD Prelim UoM Consumer Sentiment 100.9 vs 99.5 expected
  • February 17: USD Bank Holiday
  • February 19: USD Building Permits 1.55M vs 1.45M expected
  • February 19: USD Corn PPI m/m 0.5% vs 0.1% expected
  • February 19: USD PPI m/m 0.5% vs 0.1% expected
  • February 20: USD FOMC Meeting Minutes
  • February 20: USD Philly Fed Manufacturing Index

 

Market Update:

Gold price has climbed to its highest level since 2013 at $1,611.07 as continued worries over the COVID-19 epidemic in China put pressure in the world financial market. As the official new from the Center for Disease Control (CDC) on the number of people infected with coronavirus has grown without any sign of slowing down. There are over 64,000 confirmed cases of the virus in China, 588 international cases and 1,383 fatalities. The COVID-19 better known as the coronavirus is now more deadly than the 2003 outbreak of SARS when there were 8,098 reported infections and 774 fatalities worldwide. The price of yellow metal refused to bow before a stronger U.S. dollar, a rampant stock market and news of COVID-19 spreading worldwide Gold are continuing to rally.

 

Technical Analysis:

Despite the negative trade negotiations and rise on the Stock market, gold is kept resistant level $1612 and currently rising due to the weakness on the Bond market and fears of Coronavirus. At the moment gold is on the first Resistance, but all charts are firmly overbought. Gold is surely bullish on the long-term, but the prices above $1650 are overpriced as fair gold value lies at around $1,570. Gold is expected to test $1570 within 3 sessions. What will cause this fall on Gold is a combination of trade optimism (Stocks rise, Investors taking Profits on $1600 levels on their Buy positions) but mostly overbought levels.