- Gold snaps the previous day’s run-up as the US dollar remains on the bids.
- US President Trump suspends immigration into the US, WHO cites risk of resurgence.
- North Korean leader’s health, oil moves and coronavirus updates are additional catalysts.
Despite the on-going risk-off sentiment, Gold traders fail to win over the greenback bulls. That said, the bullion part ways from the previous day’s run-up while declining to $1,688 during the pre-Europe session on Tuesday.
The coronavirus (COVID-19) updates and comments from US President Donald Trump directed the precious metal moves during the early-Asia. The virus figures from the US have been downbeat but the US leader keeps pushing for the phased restart of the economy and even called New York Governor to visit the White House, the one who opposed the economy’s re-open.
Further, US President Trump also signaled that the Senate will vote on the second aid package during Tuesday, the same got confirmation from the House Speak Nancy Pelosi afterward.
Recently, the Republican leader tweeted to temporarily ban the immigration into the US and propelled the risk-off moves.
Other than US President Trump, concerns surrounding the North Korean leader Kim Jong-un’s health as well as comments from the World Health Organization (WHO) also weighed on the risk sentiment and favor the US dollar.
WHO recently crossed wires, via Reuters, while stating that the lifting of lockdown must be gradual; if relaxed too soon, there will be a resurgence.
Amid all these plays, US 10-year Treasury yields dropped two basis points to 0.607% with major stock markets in Asia flashing over 1.0% losses by the press time.
It should also be noted that a gauge of the US dollar strength versus the major currencies, known as the US Dollar Index (DXY) register the second-day gains while securing over +0.20% by the press time.
Also read: Dollar strength to cap upside in gold – Reuters Poll
Technical analysis
Sellers target a 21-day SMA level around $1,650 during the further downside below $1,700 immediate resistance.
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