Gold investing: watch out! Bulls have overheated, gold has fallen below 1650 fear more profit-taking!

International spot gold traded at $1,648.90 an ounce in early Asian trading on Thursday. Intraday gold staged a modest rally, but overall maintained its pullback from recent highs and is now constrained below the $1,650 mark.

COMEX gold for April delivery closed down 0.4 percent, down for a second straight session at $1,643.10.

In a sign of growing investor appetite for Gold, holdings of the SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, rose to 940.09 tonnes on Tuesday, the highest since November 2016.

“In addition to safe-haven demand, there is a growing expectation that growth will slow as the outbreak spreads and that the fed will act,” said Ryan McKay, commodity strategist at TD securities. The market was awash in bullish news. I think we’re seeing some participants taking profits at this level… Especially the bulls.”

Daniel Briesemann, an analyst at Commerzbank, noted that investors took profits, leading to a sharp drop in gold. Technically, the RSI is overbought and the market is a little overheated.

Technical analysis:

The dollar

On the daily chart, the dollar index moved higher and continued to retreat. Technically, the MACD green momentum column continues to expand, and the KDJ random index further declines, indicating that the dollar’s downward momentum is still strengthening, and the next material to further expand the decline.

As shown in the 4-hour chart, the dollar index also maintained the pressure finishing trend, with the MACD green kinetic energy column slightly expanded and the KDJ random index slightly tilted down, indicating that the short-term downward kinetic energy of the dollar also remained, and incoming materials continued to maintain pressure.


On the daily chart, gold settled just below multi-year highs, the MACD red kinetic energy column narrowed, and the KDJ random index came under moderate pressure, indicating that gold’s pullback momentum remained and that the pullback could continue.

On the 4-hour chart, gold prices are currently trading in a tight range, with the MACD green momentum column narrowing slightly, and the KDJ random index moving modestly higher, indicating a respite in gold’s short-term downward momentum, followed by a small rebound.

Fundamentals favorable factors:

according to the national WeiJianWei 27 bulletin, as of February 24, 26, according to the 31 provinces (autonomous regions and municipalities directly under the central government) and the xinjiang production and construction corps, the existing 43258 cases of confirmed cases of 8346 patients with severe cases (), the cumulative cured cases, 32495 cases of hospital, the cumulative death cases, 2744 cases, has reported 78497 cases of confirmed cases, the existing 2358 cases suspected cases. A total of 652,174 close contacts were traced, and 71,572 close contacts were under medical observation.

  1. On February 26, 409 new cases were confirmed in hubei (383 in wuhan), 2,288 new cured and discharged cases (1,535 in wuhan), 26 new deaths (19 in wuhan), 39,755 confirmed cases (32,392 in wuhan), of which 7,984 were severe cases (7,049 in wuhan). A total of 23,200 cases were cured and discharged from hospital (13,328 cases in wuhan), a total of 2,641 deaths (2,104 cases in wuhan), and a total of 65,596 confirmed cases (47,824 cases in wuhan). There were 403 new suspected cases (341 in wuhan) and 2,019 suspected cases (1,459 in wuhan).
  2. Iran’s health minister mohammad ali namaki announced Iran’s latest anti-epidemic measures: Iran will not quarantine cities, but there will be travel restrictions for suspected patients; Each city is equipped with a temperature detector at the entrance and exit; Any new suspected cases of coronary pneumonia will be quarantined for 14 days; Schools across the country will be closed for three days in any region where cases are found, and the government will announce the names of the schools to be closed on Friday.
  3. Iraq will close all schools and colleges for 10 days. Kuwait will close all schools during 12 March 1 solstice. Primary and secondary schools were also temporarily closed in the cities of shikawa and Hokkaido in chiba prefecture.
  4. The U.S. food and drug administration warns that the new coronary pneumonia is “on the cusp of becoming an epidemic.” The new coronavirus vaccine may not be available until after the initial outbreak is over, and expectations that it will enter human trials within three months may be too aggressive.

Fundamental negative factors:

1.New home sales jumped 7.9 per cent in January to an annual rate of 764,000, the highest since July 2007, the Commerce Department said on Wednesday. New U.S. home sales surged to a 12.5-year high in January, a sign of strength in the housing market that could help blunt the impact of the coronavirus on the economy and keep the longest expansion in history on track.

2.Human trials of a possible new coronavirus vaccine are expected to begin within six weeks, us health officials announced on Tuesday. Some analysts believe that this good news or gold late sharp decline behind the reason.

3. On February 25, he zhimin, deputy director of the state intellectual property office, said that radesivir has not been approved for listing in any country in the world, and radesivir is still in the clinical stage. There have been reports in the United States of initial results in the treatment of new coronary pneumonia. We have officially started clinical trials of the drug in a number of hospitals in wuhan, and announced the results of clinical trials on April 27.

4. New claims for state unemployment benefits rose 4,000 to a seasonally adjusted 210,000 for the week ended Feb. 15, the labor department said on Feb. 20, in line with expectations. That suggests continued strength in the labor market could help support the economy amid the risk of coronavirus and weak business investment.

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