- Gold’s reversal from week highs at $1,737 finds support at $1,717.
- Gold boosted by market fears about a second wave of COVID-19.
- The broad-based recovery of the US dollar pulls gold prices lower.
Gold futures spiked up at the European session opening on Thursday but the upside attempt has lacked follow through and the pair retreated after hitting week highs at $1,737 to find support at the $1,717 area.
XAU/USD retreats with the USD picking up
The precious metal rushed higher during the European morning time, fuelled by the mildly negative market sentiment. Investors’ concerns about the growing contagions in different US states while Beijing introduces restrictions to stem a new upbreak and the geopolitical frictions between China and India have weighed on sentiment, increasing demand for the safe-haven gold.
XAU/USD, however, has failed to confirm above the top of the recent trading range, around $1,734, and retreated to $1,720 area. The steady US dollar recovery seen during the American trading session has pushed the US Dollar Index to two-week highs taking its toll on gold prices.
Gold looking for direction around $1,720
Gold futures remain trading roughly between $1,705 and $1,740, without clear direction, for the sixth consecutive day. On the upside XAU/USD remains limited below $1,740/45 (Jun 11, 12 highs) before $1,753 (May 20 high) and 1,765 (May 18 high) On the downside, immediate support lies at $1,717 (intra-day low) and below here, $1,705 (Jun 15 low) on the way towards $1,670 (Jun 5 low).
XAU/USD key levels to watch
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