China’s Yuan plunged on scares of a coronavirus epidemic spreading from its Wuhan epicenter.
The flight to safety took 10-Year US Treasury yields with it. Breach of support at 1.75% warns of another test of primary support at 1.50%.
Flight to safety is also likely to directly strengthen demand for Gold, while lower long-term yields provide a secondary boost by lowering the opportunity cost of holding precious metals. Respect of support at $1540-$1560 would signal another advance.
Silver is weaker but continues to test resistance at $18 to $18.50. Breakout would confirm a bull market for precious metals.
A stronger Dollar, also benefiting from the flight to safety, should only partially offset the rising demand for Gold and Silver.
Australia’s All Ordinaries Gold Index continues to test resistance at 7200. Breakout above 7200 would strengthen the bull signal from 13-week Trend Index and Momentum recovering above zero.
Prospects of retracement to re-test support at 6000 are diminishing. Accumulate on breakout above 7200.
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