- Gold stages a goodish rebound from a short-term ascending trend-line support.
- The uptick was supported by concerns about a surge in new coronavirus cases.
- Some follow-through buying might lift the commodity to the $1745 supply zone.
Gold built on its steady intraday positive move through the early European session and was last seen trading near daily tops, just above the $1730 level.
The commodity caught some fresh bids on the last day of the week and staged a goodish bounce from a short-term ascending trend-line support, extending from monthly lows around the $1670 region. The uptick was supported by fresh coronavirus jitters.
Investors remain concerned about a rise in new coronavirus cases overshadowed the recent optimism over a sharp V-shaped economic recovery and turned out to be one of the key factors that underpinned demand for the safe-haven precious metal.
The intraday positive move seemed rather unaffected by a strong recovery in the global equity markets. The risk-on flow was reinforced by a strong pickup in the US Treasury bond yields, albeit did little to weigh on the non-yielding yellow metal.
Meanwhile, a subdued US dollar price action did little to influence the dollar-denominated commodity. Some follow-through buying beyond the $1730-32 pivotal resistance now seems to lift the metal towards the $1745 supply zone en-route multi-year tops.
In the absence of any major market-moving economic releases from the US, traders are likely to look forward to the Fed Chair Jerome Powell’s comments at a panel discussion for some meaningful opportunities later during the US session.
Technical levels to watch
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