Gold finally shakes off its lackadaisical trading range since two weeks ago
Gold is among the better performers today, up by 0.4%, amid fears surrounding the coronavirus outbreak situation - which is leading markets to move towards safety flows.
As a result, gold opened with a gap higher and price is now steering clear of the previous rangebound trading region around $1,540 to $1,563.
Buyers are keeping a more bullish near-term bias but they will still have more work to do this week in trying to contest for a move above $1,600.
The weekly chart shows that gold has been struggling in its recent upside move at around the 61.8 retracement level @ $1,587 and @ $1,600. Those will be key levels that buyers must try and keep above on the week to extend the upside momentum.
For the time being, it is all about the fear surrounding the coronavirus outbreak so let's see how things develop in the coming days. During the week, don't forget that there's also the Fed meeting on Wednesday that may influence the dollar side of the equation.
