Gold Creeps Toward $1,580 as Hedge to China’s Coronavirus
There’s nothing like a global contagion to get gold buyers to pile back into the safe haven. The yellow metal hit two-week highs on Friday, creeping toward the $1,580-per-ounce level targeted by gold bugs on worldwide fears over the economic fallout to the China-originated coronavirus. Likened to the Chinese-originated SARS health epidemic that caused major market disruptions in 2003, the coronavirus has killed 26 people so far, also in China. It has prompted the Chinese authorities to introduce travel restrictions across 10 cities, affecting up to 40 million people according to some reports, in the middle of the country’s most important holiday season, the Lunar New Year. Even Shanghai’s Disneyland, one of the country’s most popular tourist destinations, has been shut.
Oil rebounds, but markets ‘twitchy’ over China virus impact on demand
Oil prices edged up on Friday, helped by a decline in U.S. crude stockpiles, but were on track for to fall up to 5% for the week on worries that the China coronavirus that has killed 25 so far may spread, curbing travel, fuel demand and economic prospects. The virus has infected more than 800 so far in China, with 25 dead as of Thursday, according to China’s National Health Commission. The World Health Organisation has declared the situation an emergency, but stopped short of declaring the epidemic of international concern. of the cases are in the central Chinese city of Wuhan, where the virus is believed to have originated late last year, though cases have now been found in at least seven other countries.
Copper Sees Worst Losing Streak Since 2018 on Virus Fears
Copper saw its worst streak of losses since mid-2018 as more patients were infected by the deadly coronavirus in the U.S., spurring a sell-off in riskier assets while boosting gold’s haven appeal.
U.S. officials are monitoring more than 60 people as they attempt to catch new cases of coronavirus in travelers from China, the center of the outbreak. Mounting concerns that the spreading deadly disease could further crimp global growth sent equities and commodities declining.
MCX Gold last week showed straight bullish movement and pulls upward towards the resistance level of 40500 and closed around it. For upcoming week if price trades above 41000 levels then it can give upside movement up to next psychological resistance level of 41500. On lower side, if price slide towards lower side than 39500 will act as vital support level below this momentum can find next support level at 39000.
Better strategy in MCX GOLD is to buy above 40500 for the target of 41000 with stop loss of 39800.
MCX Silver last week showed sideways to bullish movement after took a support of 45678. For upcoming trading session we will continue to suggesting bearish trend, if price sustains below 45500 levels and after that 44500 to 44000 will act as a next important support level. On higher side it has immediate resistance at 48000 and if price maintain above this level then it will take towards the resistance level of 49500.
Better strategy in MCX SILVER is to buy above 47500 for the target of 49000, with stop loss of 45500.
MCX Crude oil last week showed bearish movement in whole week and found near to its support zone i.e. around 3850 levels. For upcoming period if bearishness will active towards support level of 3800 then after that 3650 will be next immediate support and if price takes bullish movement from current levels towards upside side then it can test resistance level of 4100 and after that 4300 will act as a next resistance level.
Better strategy in MCX CRUDE is to sell below 3800 for the target of 3650, with stop loss of 4000.
MCX Copper last week showed bearish movement, drag down towards the support level of 437.40. For upcoming session, if price maintains above 447 levels then it may give more upside movement towards next resistance level of 457. On lower side it has support level at 435 and if sustain below 434 level then it will move down towards the next major support level of 425.
Better strategy in MCX COPPER is to buy above 442 for the target of 447, with stop loss of 435.
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