- Gold struggles to keep recovery moves from $1,900.67.
- Risks dwindle amid US stimulus deadlock, virus woes and Brexit pessimism.
- Second-tier data, risk factors to entertain the bullion traders.
Gold prices fade uptick to $1,905.03, currently around $1,904.14, during the initial Asian session on Tuesday. The yellow metal managed to cheer the US dollar weakness, before stepping back from $1,918.58, the previous day. The reason for the quote’s recent weakness could be traced from the receding odds of any coronavirus (COVID-19) stimulus from the US. Also weighing the trading sentiment could be the lack of COVID-19 vaccine and no signs of fresh Brexit talks.
Bulls remain challenged, bears need fresh power…
Although risk-off mood directs the global traders toward the US dollar, which indirectly favors the gold sellers, ingrained weakness concerning the US economic and political issues probe the greenback bulls. As a result, gold traders are waiting for clear direction while respecting the US dollar moves in the meantime.
Among the challenges faced by America, talks concerning the COVID-19 aid package becomes the key hurdle for now. Even if Republicans have finally shown readiness to go big on the amount, Democrats are finding it difficult to have an agreement for voting during this week, as suggested by the Senate Leader Mitch McConnell. Also probing the market optimism is the upcoming US presidential elections, in November, as well as a lack of vaccine to cure the deadly virus.
Not only the US but the global scientists are also struggling to find the vaccine for the pandemic while trials by the key players have taken a halt a few days back.
Brexit pessimism also remains on the table despite the European Union’s (EU) readiness to talk. The reason could be traced from the UK’s refrain from respecting the bloc’s intentions unless showing a clear sign to overcome important issues like the level playing field, governance and fisheries.
Sino-American and the China-Aussie tussles are also playing their roles to heavy the risks whereas chatters concerning Taiwan and Hong Kong join the line as well.
Amid these plays, Wall Street summed up the Monday’s trading on a negative side but the US 10-year Treasury yields closed in positive around 0.77% at the end of the North American session. Currently, S&P 500 Futures rise 0.15% to 3,438 after five days of consecutive declines.
Looking forward, minutes of the Reserve Bank of Australia’s (RBA) latest monetary policy and interest rate decision by the People’s Bank of China (PBOC) can offer immediate moves to gold prices. Though, risk updates will be the key to follow for near-term direction.
Technical analysis
Unless breaking an ascending trend line from September 28, at $1,902 now, followed by the $1,900 threshold, sellers are less likely to eye the monthly bottom surrounding $1,873.
Share
