• Gold has moved slightly lower on Tuesday but the yellow metal holds above a key level.
  • Risk sentiment is still on the rise but are investors getting complacent. 

Fundamental backdrop

Today, equities markets have continued to rally as the acceleration in new cases and deaths slowed again in Italy and Spain. Italian COVID-19 cases rose to 135,586 vs the previous of 132,547 and the death toll rose by 604 to 17,127. This makes a decent difference in percentage terms.

In the UK, Prime Minister Boris Johnson has been admitted to hospital and put in intensive care after his condition worsened. He contracted the coronavirus around 10 days ago now but it seems that the situation has got worse and the UK leader had trouble breathing. Elsewhere, cases in the UK rose 10.7% to 55,242 (prev. +8.4% at 51,608), the death toll also pushed to 6,159 (prev. 5,373). Another steep rise. 

Surprisingly, the whole market seems to be looking forward to exit strategies. I feel like this is slightly premature and there is still some downside left to come. In Austria and Denmark, there has been an announcement that some schools and shops may open but we are far from that in the UK and the US. The economic impact of the closures have not even been reported by companies and corporations. Retail and housing names must have taken a massive hit, so I feel it will be best to wait for more information before jumping on the equities bandwagon. 

Technical picture

Looking at the 4-hour chart, the price has consolidated at a pretty high level. If the bullishness in equities continues then the price might fall. Interestingly, the USD will also fall as the coronavirus trade inspired USD strength. The USD 1640.00 level is a decent support level to watch as it has been used on six occasions and seem reliable. Even if it does break it will tell you a lot about the state of the market and the perception of the safe-haven asset. Longer-term the resistance level to watch remains to be USD 1700. If investors feel the worst is still yet to come a break could happen and even an eventual test of USD 2000. The internal trendline in black is the point where the price has stopped at the moment. The black line underneath could now be the next support zone. In the medium term, this could play out as more information is being gathered about the virus growth rates in the US. The chart is still a bullish one and the bias will not change until a lower high is created and USD 1640 is broken to the downside.

Gold Support Level

Additional levels


Today last price 1655.57
Today Daily Change -3.95
Today Daily Change % -0.24
Today daily open 1659.52
Daily SMA20 1581.43
Daily SMA50 1594.44
Daily SMA100 1550.69
Daily SMA200 1515.43
Previous Daily High 1669.3
Previous Daily Low 1609.15
Previous Weekly High 1636.13
Previous Weekly Low 1568.46
Previous Monthly High 1703.27
Previous Monthly Low 1451.3
Daily Fibonacci 38.2% 1646.32
Daily Fibonacci 61.8% 1632.13
Daily Pivot Point S1 1622.68
Daily Pivot Point S2 1585.84
Daily Pivot Point S3 1562.53
Daily Pivot Point R1 1682.83
Daily Pivot Point R2 1706.14
Daily Pivot Point R3 1742.98



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

EUR/USD tops 1.12 amid risk-on mood, ahead of data

EUR/USD is trading around 1.12, the highest since March. The safe-haven dollar is weakening amid optimism for reopening and stimulus, shrugging off civil unrest. EZ Services PMIs beat estimates. ADP's jobs report is eyed.


GBP/USD retraces gains under 1.2600, Brexit, US data eyed

GBP/USD consolidates the latest gains just around 1.26 amid dollar weakness. The Brexit impasse continues despite hopes for mutual concessions. Markit's Final Services PMI beat expectations with 29 points, still reflecting deep contraction.


Forex Today: US unrest? Stocks remain restless, extend surge, dollar dives to new lows, top NFP hints eyed

Large protests continue in the US, albeit with a quieter nature. Markets are focusing on stimulus, with stocks extending the gradual gains and the safe-haven dollar further falling. A busy day awaits traders with two Non-Farm Payrolls hints, the BOC decision, and additional data.

Read more

WTI: Aims to fill the early-March gap above $41.00

WTI eases from a three-month high of $37.17 at the end of the four-day winning streak. The energy benchmark paid a little heed to the price-positive weekly inventory data from the American Petroleum Institute (API).

Oil News

Gold: Prints rounding top on 4-hour chart above $1,700

Gold stays mildly offered after stepping back from $1,745. Considering the bullion’s moderate pullback since the week’s start, a potential rounding top bearish formation appears on the 4-hour chart. An ascending trend line from April 21 is on the bears’ radars.

Gold News

Forex Majors