Gold: Mildly bid below $1,700 amid coronavirus-led risk-off

• Gold prices hold onto recovery gains from $1,640.
• Coronavirus outbreak continues to spread fears during Good Friday, Easter Monday holidays.
• US stock futures mark risk-off with losses.
• An absence of major data/events will keep virus updates on the driver’s seat.

While extending its recovery moves from $1,640, registered last Thursday, Gold prices remain 0.36% positive to $1,690 amid Monday’s Asian session. In doing so, the bullion seems to take clues from the coronavirus (COVID-19) fears amid an absence of major market players due to the holidays.

With more than 114,000 deaths, not to forget above 1.8 million cases, the pandemic has feared the global policymakers and pushes the rush to risk-safety. The recent drive up could have taken clues from the US data.

The world’s largest economy has toppled Italy to become the global epicenter of the deadly disease. As per the latest data, there are more than 20,000 deaths and above 530,000 cases in the US.

While US President Donald Trump shows readiness to counter the pandemic, the Federal Reserve policymakers, Minneapolis Fed President Neel Kashkari is the latest, have raised fears of the economic downturn due to the epidemic.

To portray the risk-tone, the US S&P 500 Futures drop 1.12% to 2,748 by the press time whereas Dow futures also mark the losses of the same weight while flashing 23,330 as a quote at the time of writing.

Although the broad risk-off could keep gold prices on the bulls’ radar, an absence of major data and Easter Monday holidays in some of the key markets could keep prices in check.

Technical analysis

Buyers await a clear break above $1,700 to question the previous month high surrounding $1,703. Alternatively, an ascending trend line from March 20, currently near $1,680, could keep short-term declines limited.