Gold Intraday Safe Haven Demand Fades on Easing Coronavirus Cases
U.S. recorded the smallest increase in new confirmed coronavirus in nearly a month yesterday, while U.K. and Italy also showed slower pace of spread...
Share this:
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:
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold Forecast: Are Bears Regaining Control of XAU/USD?
The start of the trading week has not been particularly favorable for gold. This can be seen in recent XAU/USD price action, with the metal falling nearly 4.00% over the last two trading sessions and bringing renewed attention to a bearish bias within the market.
Gold outlook: XAU/USD hammered, stretched and vulnerable to a sharp rebound
Gold is getting hammered for solid fundamental reasons, but history suggests extreme four-hourly oversold conditions can produce violent countertrend rallies.
Gold forecast: Rising yields become too hot for gold, but the outlook is far from bearish
Gold and silver prices took a plunge today, with the former down 3% and the latter falling some 5% by mid European session, before bouncing off their lows. The losses come after the metals remained largely supported until last week, despite the big dollar rally and surging bond yields as we have seen in recent weeks. But it simply got too much, and the metals succumbed to pressure today.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.