As the coronavirus pandemic worsens in Europe and the US, investors are panic selling and finally realising the impact. Buy gold at dip?
- US equities fell hard for the past 2 days after the fear of coronavirus spreading in US and Europe worsens.
- Investors have been ignorant on the coronavirus issue and slightly too optimistic. This is why when there’s sudden increase in new cases was reported in the US and Europe, fears hit them as the outbreak has become an actual reality.
- The US Centre of Disease Control said that the pandemic is inevitable, and it could take at least a year before a vaccine could be produced.
- I’ve mentioned in our report that it is too early to call peak for the coronavirus outbreak and the situation will only worsen.
- We recently sold that gold rose sharply towards 1689 price level after a serious outbreak happening in South Korea, Italy and Japan.
- With US and Europe having their fair share of problems from the outbreak, we should expect the global economy to feel the heat in the 2nd
- We saw a healthy retracement for gold back to 1624 price level on Tuesday. We believe that gold still has room to move higher and every dip provides an opportunity for a buy.
- As long as gold doesn’t break the 1615 price level, the trend is still on the long side towards the 1700 price level.
Fullerton Markets Research Team
Your Committed Trading Partner