Gold buyers look to regain control above $1,700


  • Gold prices hold onto recovery gains from Thursday’s low of $1,717.34.
  • Risk aversion remains present amid US-China tussle, virus woes.
  • Uncertainty over the equities’ future also favors the safe-havens.
  • Comments from China’s National People's Congress can offer immediate direction.

Gold prices extend pullback from a one-week low of $1,717.34, flashed the previous day, to currently around $1,727.40 during Friday’s Asian session. Although the US dollar recovery seems to cap the yellow metal’s rise, escalation of the US-China tussle and the coronavirus (COVID-19) keep the bullion’s safe-haven demand intact.

Following China’s indirect warning to the US, from the 13th National People's Congress, the tussle between the world’s top two economies intensified while including the Hong Kong issue as an additional point.

While diplomats from the dragon nation stand ready to counter any interference in their “personal” issues and/or allegations for the virus outbreak, US policymakers refrain to step back. Recently, the US Senate Majority Leader McConnell said that further China crackdown on Hong Kong will intensify the Senate’s interest in re-examining the US-China relationship.

On a different note, the Asian major dropped its economic growth target, 6-6.5% for GDP in 2019, during the report to the National People's Congress, as per the Bloomberg. This increases the market’s uncertainty and suggests that the dragon nation was fearing much disappointment from the GDP, which in turn supports the safe-haven demand of the metal.

Elsewhere, the virus wave 2.0 is also challenging the global policymakers to rethink their decision to restart the economies. However, US President Donald Trump recently said he will not shut down the economy during the second round of the virus.

Amid all these catalysts, the US 10-year Treasury yields stay down below 0.70% while Japan’s NIKKEI struggle for direction around 20,560 by the press time.

Considering the lack of major data/events on the economic calendar, except for the BOJ, the bullion traders may keep eyes on the qualitative catalysts for fresh direction.

Technical analysis

Failures to close below 21-day SMA level of $1,715 keeps the yellow metal directed towards the monthly top surrounding $1,765.40. Though, a downside break might not refrain from calling a sub-$1,700 area back to the chart.

Additional important levels

Overview
Today last price 1728.38
Today Daily Change 0.67
Today Daily Change % 0.04%
Today daily open 1727.71
 
Trends
Daily SMA20 1715.38
Daily SMA50 1660.28
Daily SMA100 1624.37
Daily SMA200 1558.64
 
Levels
Previous Daily High 1749.14
Previous Daily Low 1717.34
Previous Weekly High 1751.8
Previous Weekly Low 1690.05
Previous Monthly High 1747.82
Previous Monthly Low 1568.46
Daily Fibonacci 38.2% 1729.49
Daily Fibonacci 61.8% 1736.99
Daily Pivot Point S1 1713.65
Daily Pivot Point S2 1699.6
Daily Pivot Point S3 1681.85
Daily Pivot Point R1 1745.45
Daily Pivot Point R2 1763.2
Daily Pivot Point R3 1777.25

 

 

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.

Feed news

FXStreet Trading Signals now available!

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


Latest Forex News

Editors’ Picks

EUR/USD chops around amid end-of-month flows, ahead of Trump

EUR/USD is battling 1.11, close to the two-month highs amid choppy trading. Hopes for a fiscal boost in Europe and mixed satisfactory data have supported the currency pair. , Sino-American tensions are rising and investors await President Trump's China announcement.

EUR/USD News

GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures