 Hi and welcome to the chart of the week video with me at David Madden. Today's date is Thursday, the 30th of January 2020 and the time has just gone 1805 GMT and this week's chart of the week is gold Gold as seen its demand pick up in the last few sessions given what's going on in the In the health crisis in relation to the coronavirus We've seen a particular day of heavy selling on stock markets around the world today And with that we've seen traders seek out assets that are deemed to be lower risk So such as gold so we can see here at the gold for the last couple of sessions has pushed higher If we take a look at the wider price action of gold, we can see here. It's been in a solid upward trend for many months In set in early or this year in January and early January The metal hit its highest level since 2013. It's about a six six and a half year high Thousand the back of the tensions with Iran so the market hit them all to your high It's cooled off and now and now with the with the unfortunate health crisis that we're seeing Largely China, but around the world. We are seeing the man for the metal push higher yet again Now if you take a look at this to kind of recap of what's going on in terms of stock markets today The footsie dropped to a six-week low the DAX over Germany dropped to a one month low Not too long ago the US health authorities announced That that it's had the first confirmed case of person to person transmitted coronavirus in the US And with so now that it's in the US Fortunately, this is an open the possibility of things Getting worse over there So this is this is good could this could potentially be a triggering effect on US stock markets and indeed the stock markets around the world Now if you've got to be trading The gold market it is also we're keeping eye on what's going on in in stock market So I mentioned the the sell-off in in at the DAX and also the cat and also the DAX and the footsie But this is a quick look here What's going on in Hong Kong because it's in that part of the world We can see quite an aggressive sell-off in the Hang Seng the Hong Kong market a fellback To a six-week low so security in a strong downward trend. This is obviously in a part of the world That's you know close to you know, essentially beside mainland China so it's quite close to like quite close to the For the with the main issue with the main health crisis is so the sharply clients that we're seeing You know in Hong Kong is kind of reflected around the world. That could be a trigger for further upward demand for gold so go if the gold market does press on higher from here because we're currently around 1585 you could press on higher from here. We could be looking at targeting the the cycle actually important 1600 dollars level And if you go beyond that we could be looking at retesting the highs of January in around 1611 If we do see a bit of a pullback We could see support coming to play in around this zone here in around 1562 we saw a bit of consolidation in that area in the last couple of weeks I didn't be dropped below that support could potentially be found in this area here the lows of mid-January in around 1536 and I saw and they even if you drop below that we could potentially head back towards this price area here in around 1520 like I said Even though it's been in a solid upper trend for some time It's it's hit a over six year high in January. So the upper trend is not very much intact So it's only really if you can have a size of break below the fifth of the moving average This blue line here and that comes in the play in around 1511 It's only if you have a size of break below that could then we begin to think you know what maybe the kind of wider Upper trend has come to an end So we've talked about potential reasons why gold could move to the upside we've seen stock markets under massive pressure But one issues that that's also if often influence is gold is the US dollar gold is traded US dollars So the weaker the US dollar is it usually helps gold Conversely the stronger the US dollar is usually puts pressure on gold So the dollar index has been pushing higher for the last few weeks So in a way, it's sort of being acting as a bit of a potentially as a cap to the upward move in gold So if you are going to be trading the US dollar if you're gonna be trading gold, it's worth you while keeping an eye What's going on the US dollar index? I'm looking at a four-hour chart here I could draw a little bit between the lines of late December to the line to the lows of early January You get this trend line along here so far. It's been been respected But if you do have a slice of break below that it could suggest we prefer the losses on the gold on the US dollar Which in turn would potentially be good for gold Conversely if gold the US dollar continues to drive on higher from here that could act There is it as a as a cap to potential gains for the gold market or even I should push gold lowered depending on how things play out Well, for the time being I would say I would suggest that they had the crisis That we're seeing in relation to the coronavirus is the is the main story to follow If you are trading any of the financial markets gold or any of the markets are just mentioned it is worth noting that overnight China are going to release it's make some important economic indicators Manufacturing and non manufacturing these will give us a clue or a guide of the of the of the strength or the weakness of The Chinese economy and this in turn could actually move the markets one way or the other That's all for me this week. Thank you very much and have a good trip to week