Equity markets took a pause amid news of China reporting a higher number of coronavirus cases. This comes as Chinese authorities changed the process which now includes “clinically diagnosed” people as well.
All major equity markets reacted negatively to the new numbers while there was a modest flight to safety.
XAU/USD Clears Resistance, but Will it Hold?
The precious metal maintained a bullish momentum which finally allowed price to break past the resistance area of 1573 – 1569. Given that the Stochastics is well overbought, there is doubt if the bullish streak can be maintained.
If prices slip back below this level, we expect the declines to continue.