- Gold continued gaining traction for the third straight session on Tuesday.
- Concerns over coronavirus crisis remained supportive of the positive move.
- Bulls seemed rather unaffected by a turnaround in the global risk sentiment.
Gold quickly reversed an early European session dip to levels just below the $1710 region and spiked to fresh multi-year tops in the last hour.
The precious metal added to its recent gains and continued scaling higher for the third consecutive session on Tuesday amid persistent worries over the economic fallout from the coronavirus pandemic.
Adding to this, a subdued US dollar demand – despite a goodish pickup in the US Treasury bond yields – further underpinned demand for the dollar-denominated commodity and remained supportive.
This comes amid expectations of a prolonged period of low/negative interest rates and aggressive stimulus measures, which further contributed to the ongoing momentum to the highest level since 2012.
Meanwhile, a turnaround in the global risk sentiment did little to dampen the prevailing strong bullish mood, albeit might turn out to be the only factor capping gains for the safe-haven precious metal.
Moreover, slightly overbought conditions on short-term charts warrant some near-term consolidation or a modest pullback before traders again start positioning for any further appreciating move.
In the absence of any major market-moving economic releases from the US, developments surrounding the coronavirus saga might continue to play a key role in influencing the metal’s momentum on Tuesday.
Technical levels to watch
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