Gold Price Analysis: Levels to watch as coronavirus panic grips markets

Gold has been trading around $1,650, stabilizing after several turbulent days that have sent the price of the precious metal to nearly $1.690 before a substantial correction.

Coronavirus fears are gripping stocks, sending American shares down on the second day of a considerable sell-off. Investors are flocking into safe-haven assets such as bonds. Ten-year Treasury yields have hit an all-time low under 1.32%. 

XAU/USD may wake up and resume its rise. The levels to watch are $1,657, which has been capping gold in recent hours. It is followed by $1,670, which provided support on Monday when the yellow metal traded at high ground. Next, the swing high of $1,680 is a weak resistance line. Finally, $1,689 is the seven-year high. A far target is $1,800.

Support awaits at $1,643, a low point on Monday, and followed by the correction low of $1,633. The next levels are $1,623, and $1,613, both from last week.