- Gold prices retreat from the weekly top after two consecutive days of gains.
- Trade sentiment struggles for direction amid mixed catalysts.
- Virus updates remain as the key amid a light calendar ahead of the US session.
Gold’s pullback from the weekly top takes rounds to $1,730 during the early Asian morning on Friday. The yellow metal earlier cheered the market’s risk-on sentiment but has failed to keep the gains recently amid mixed news.
Concerns surrounding the initial failures of Gilead’s Remdesivir, a much-hyped likely cure to the coronavirus (COVID-19), seemed to have initially challenged the previously upbeat trade sentiment. Though, speculations that the BOJ will discuss discarding bond purchase limits in its Monday meeting kept the risk aversion in check.
Following that, the US diplomats tried to sell the idea of re-opening the economy as soon as possible due to the recovery in the pandemic figures. However, the White House Adviser Larry Kudlow and Secretary of State Mike Pompeo availed the opportunity to allege China for the outbreak.
Further, the US House passes a $484 billion aid package for small businesses, hospitals and testing while the Fed also tried to ease the way for small businesses to fight against the epidemic.
Amid all these catalysts, S&P 500 Futures remains on the back foot, down 0.43% on a day to 2,770, after the dubious performance of Wall Street.
Looking forward, a lack of major data on the economic calendar ahead of the US session will keep the virus updates in the driver’s seat. During the US session, the markets may extend the risk-on sentiment due to the recently passed aid package if the scheduled Durable Goods Orders and Consumer Sentiment data defy the downbeat forecasts.
Technical analysis
Buyers are repeating the habit of stepping back from $1,740, which in turn may recall $1,700 mark should there be a break below $1,719/18 immediate support.
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