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

Today last price 1728.38
Today Daily Change 0.67
Today Daily Change % 0.04%
Today daily open 1727.71
Daily SMA20 1715.38
Daily SMA50 1660.28
Daily SMA100 1624.37
Daily SMA200 1558.64
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



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