- Gold steps back from its highest since November 2012, still positive on a day.
- Risk-tone recovers amid hopes of the coronavirus peak.
- Upbeat China data, US President Trump’s push for economy’s restart add to the risk reset.
Gold pulls back from the multi-year high, flashed during early-Asia, while taking rounds to $1,715 amid the pre-Europe session on Tuesday.
In addition to the early-day upbeat comments from the US Task Force Briefings, headlines from the UK also suggest the coronavirus (COVID-19) is near to its estimated peak. The same could negatively affect the gold’s safe-haven demand that has recently fuelled the bullion to the highest since November 2012.
The buyers might have also waited for fresh clues following US President Donald Trump’s extra push for the economy’s restart as well as upbeat China trade balance data for March.
Even so, the US is still the world’s epicenter of the pandemic whereas the UK and Europe are also in pain with the global cases near to two million mark.
While portraying the risk reset, stocks in Asia and the US 10-year treasury yields remain on the positive side whereas the US stock futures also part ways from the mixed Wall Street closing with more than 1.5% gains each.
Given the market’s major attention on the virus headlines, amid a lack of important data/events, any more efforts by the global policymakers to combat the epidemic may propel the precious metal.
Technical analysis
FXStreet’s Yohay Elam relies on Technical Confluences Indicator to suggest $1,714 as the nearby support contrast to $1,723 as the immediate resistance:
The Technical Confluences Indicator is showing that that gold has some support at $1,714, which is the convergence of the Bollinger Band 15min-Lower and the Pivot Points one-week Resistance 1. It is followed by strong support at $1,704, which is a dense cluster of lines including the Simple Moving Average 100-15m, the Pivot Point one-month Resistance 1, and the previous month’s high. Some resistance at $1,723, which is the confluence of the previous daily high and the BB 15min-Upper. The upside target is at $1,729, where we see the Bollinger Band one-day Upper and the BB 4h-Upper converge
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