Gold prices are consolidating the recent correction, with bulls in charge. Should fear subside, gold could struggle, although is exposed to a renewed round of panic. The price of gold in the open on Monday is relatively quiet with the price trading between $1,609.11 and $1,621.24, slightly down at the time of writing at $1,615.33. However, bulls have been in charge of a correction from the mid-March lows and Friday’s as COVID-19 continues to spread and play havoc on the global economy. COVID-19 Updates: A crucial week ahead for the debacle Throughout last week, rising unemployment in the US saw investor appetite for precious metals rise and we saw a bid in precious metals with the price of gold rallying to US1,620/oz after a far worse than expected payrolls number in the US. More on that here: US NFP Quick Analysis: A grim future partially foretold. “Signs of the recent tightness in the physical market easing tempered these gains. The average premium of gold coins to spot physical had ballooned out to USD50/oz in late March as the tightness reached its peak,” analysts at TD Securities explained. “That has since fallen to a discount of USD50/oz. Nevertheless, strong flows in gold-backed ETF funds show investor appetite for physical gold remains strong.” Indeed, the price is moving to territories that will have CTA’s shorts getting nervous. However, should the fear subside, then gold may struggle, although the situation is highly fluid. Fear subsiding, gold to struggle? “We’re not out of the woods just yet in the coming weeks, as our sentiment readings suggest that fear has subsided. It’s worth reiterating that gold is a high beta asset to pandemic sentiment into the fear stage of the narrative, as the highly deflationary impulse from containment efforts could send real rates higher,” analysts at TD Securities explained, arguing that this leaves gold and other high beta assets exposed to a renewed round of panic. “It’s worth noting that the narrative surrounding COVID-19 is itself highly contagious, as it encourages many repetitions for discussion, involves celebrities, and can easily be surrounded by many parallel narratives (such as the resulting economic fallout). These elements make a narrative highly contagious and can ultimately provide the lubricant for renewed rounds of fear. In this context, the left tail remains fat in precious metals.” Gold levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US Pres. Trump: If oil price stays the way it is he would do very substantial tariffs FX Street 2 years Gold prices are consolidating the recent correction, with bulls in charge. Should fear subside, gold could struggle, although is exposed to a renewed round of panic. The price of gold in the open on Monday is relatively quiet with the price trading between $1,609.11 and $1,621.24, slightly down at the time of writing at $1,615.33. However, bulls have been in charge of a correction from the mid-March lows and Friday's as COVID-19 continues to spread and play havoc on the global economy. COVID-19 Updates: A crucial week ahead for the debacle Throughout last week, rising unemployment in the US saw investor… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.