Source: Economic Events March 4, 2020 - Admiral Markets' Forex Calendar
While Gold's weak weekly close last Friday was certainly surprising, not only for Gold traders but among all market participants, the picture in the precious metal switched to very positive on Tuesday again.
After the Fed cut interest rates by 0.5% on Tuesday, Gold stormed back above 1,600 USD.
The US central bank was forced to take this step by recent developments around the Coronavirus, potential long-term negative impact on the US economy, the resulting risk-off mode with high volatility, and 10-year US-Treasury yields are set to drop towards and below 1.00% for the first time ever.
This is especially true, and volatility is expected to stay elevated since the worst is probably yet to come. The US CDC has stated that it wants to prepare the American public for the possibility that their lives will be disrupted in the US as the Coronavirus spreads.
Such developments will potentially force the Fed to ease their monetary policy even more, with US yields seeing another push lower, driving Gold higher and leaving room for a significant break above 1,700 USD.
On the downside, the daily trend support can be found around 1,535/545 USD with Gold staying bullish on a daily time-frame above that level.
Source: Admiral Markets MT5 with MT5-SE Add-on Gold Daily chart (between November 30, 2018, to March 3, 2020). Accessed: March 3, 2020, at 10:00pm GMT - Please note: Past performance is not a reliable indicator of future results, or future performance.
In 2015, the value of Gold fell by 10.4%, in 2016, it increased by 8.1%, in 2017, it increased by 13.1%, in 2018, it fell by 1.6%, in 2019, it increased by 18.9%, meaning that after five years, it was up by 28%.
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