Last week Gold traders witnessed worst week since 2016. The gold price tanked the worst two-day drop in history as pandemic panic grips global financial markets. Gold is down more than 9% on a weekly basis; the price is down more than $175 an ounce from its opening levels on Monday which could lead to one of the most significant weekly loss. On Monday the yellow metal hit a seven-year high of $1,704.30 an ounce. The main reason Gold dropped after investors were forced to sell their gold positions to cover for losses elsewhere.
On Friday the gold price closed at $1520, the past 4 trading sessions have been a tough time for gold buyers. The prices have fallen from $1700.0 to the $1500.0 area. Price is near the support trend line of the Ascending Channel. Next movement will depend on if we have a confirmed retracement or the breakout of the support. In this coming week, the traders and investors are waiting for the Federal Reserve meeting on Wednesday with the central bank looking increasingly ready to cut rates to zero and introduce quantitative easing.