Gold is bouncing back thanks to Fed money printing. The Federal Reserve announced a $500 billion (half a trillion dollars) of injections into bonds across a variety of maturities amid extraordinary conditions in markets following the coronavirus crisis.
Gold – which had been suffering amid a broad sell-off – has recaptured the $1,600 level. While the yellow metal tended to be a safe-haven that advanced in times of trouble, the generalized sell-off weighed also on XAU/USD.
The next levels to watch are $1,630 (support before the fall), $1,630 (range top before that crash), $1,671 (the previous range’s high), and $1,688. The seven-year high of $1,701 is next.
Support awaits at $1,590 (previous swing low) and then $1,560 (the daily trough).
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