Risk aversion in Asia seems to have put a bid under gold. Get updated on how the precious metal now trades on the 6 February Gold Price Technical Forecast.
6 February, GKFX – The risk-off tone in the equities is boding well for the safe haven yellow metal.
Currently, gold (XAU/USD) is up 0.80 percent at $1347 levels, having hit a high of $1348.10 and low of $1338.70.
Asian equities are feeling the heat of the 1000-point drop in the Dow index. Further, the risk aversion in Asia is feeding back into the US equities. Thus, S&P 500 futures are down at least 1.5 percent. The negative feedback loop is forcing investors to take shelter under the safe haven assets like gold and treasuries.
The 10-year US Treasury yield has dropped more than 5 basis points in Asia and was last seen at 2.68 percent.
Looking ahead – the yellow metal could remain well bid as European equities will, likely, track the Asian indices lower.
6 February Gold Price Technical Forecast
A break above $1354.30 (Feb. 1 high) would open doors for $1366.80 (Jan. 24 high) and $1370.50 (Jan. 25 high). On the downside, a move below $1338.70 (session low) could yield a deeper pullback to $1324.10 (Jan. 18 low) and $1308.90 (Jan. 10 low).
This article 6 February Gold Price Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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