Gold Intraday Safe Haven Demand Fades on Easing Coronavirus Cases

Gold bars article image for an article on Precious metals and Gold
Blue avatar for FOREX.com guest contributors
By :  ,  Financial Analyst

Spot gold lost 0.9% on day to $1,714 on Monday and dipped further to $1,704 during Asian trading hours today. According to Johns Hopkins University, U.S. confirmed coronavirus cases rose 2.3% yesterday, the smallest increase in April, while U.K. and Italy also showed slower pace of spread. Global central banks have introduced a series of rate-cuts and quantitative easings during the crisis, and passing the coronavirus peak would imply that ultra-loose monetary policies maybe about to end. Will this mark a downturn for gold price remains to be seen, the intraday outlook for the precious metal does not look decent.

From a technical point of view, spot gold is under pressure as shown on the 1-hour chart. It has retreated after another failed attempt to break through its previous high, and has now broken below a bearish descending triangle pattern. The level at $1,721 may be considered as the nearest resistance, with price likely to head towards $1,691 (38.2% Fibonacci retracement of the rally started in April 21) and $1,680 in extension. In an alternative scenario, a break above $1,721 might suggest that it would test $1,739 again.

Source: TradingView, GAIN Capital

Related tags: Gold Central Bank Commodities
The complete CFD trading experience

Award-winning platforms, competitive spreads, low commissions and dedicated support.

We live and breathe the markets. For over 20 years, we've helped traders realise their ambitions and continue to set the industry bar.

Trading view chart close-up
Economic Calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.