Gold drops from fresh weekly top to intraday low around $1,710 amid mixed catalysts
- Gold prices seesaw after the previous day’s positive performance.
- Upbeat signals from Australia, New Zealand struggle to ward off risks emanating from the US, China.
- Oil also moves between gains and losses following Wednesday’s recovery.
- US data, virus updates become crucial for near-term direction.
Gold prices seesaw in the last hour, from the fresh weekly top of $1,719.38 to intraday low of $1,709.36, during the early Thursday. While upbeat comments from the PMs of Australia and New Zealand might have escalated the previous day’s risk-on, fears emanating from China and the US seem to check the optimists.
In addition to the Aussie PM Morrison’s signal to ease the lockdown, upbeat preliminary figures of Australian trade data for March might also have contributed positively to the risks. Further, New Zealand PM Jacinda Ardern also said that her government is looking at all options to stimulate the economy.
On the other hand, US President Donald Trump threatened Iran while also pushing for the economic restart. Additionally, fears of a slowdown in China’s growth and the existence of ‘two viruses’ in the US weigh on the trade sentiment.
Amid all these catalysts, the US 10-year Treasury yields remain on the back foot around 0.61% but S&P 500 Futures trimmed the early-day looses. Further, stocks in Asia-Pacific also mark mild gains by the press time.
It’s worth mentioning that oil seesaw between gains and losses, currently down 0.60% around $14.20, while looking at WTI June contract.
Looking forward, today’s US economic calendar is likely to be the key due to the weekly Jobless Claims as well as preliminary readings of the monthly Markit PMIs.
Technical analysis
Unless clearing a seven-day-old resistance line, currently near $1,720, buyers are less likely to aim for the fresh monthly top beyond $1,748. However, March month's top surrounding $,1703 and $1,700 round-figure restrict the bullion’s immediate declines.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
