Gold fails to keep it above $1,700 as bulls catch a breath

  • Gold drops from a multi-month high.
  • No positive change in the coronavirus headlines.
  • Japan PM, US President expected to showcase, unveil measures.
  • The collapse in oil prices exerts downside pressure on the global policymakers.

Following its run-up to the highest since December 2012, Gold prices drop to $1,662.80, down 0.73%, ahead of the European open on Monday. The yellow metal’s early-day run-up could be attributed to the week-start risk-off whereas the latest declines might have taken clues from the global policymakers’ readiness to counter the coronavirus (COVID-19).

A complete blockage in Lombardy and the rising death toll in Italy, coupled with the news from Saudi Arabia and Russia, triggered the early-Asian risk-off moves. The momentum propelled the yellow metal towards a multi-month top piercing $1,700, high of $1,703.40.

Though, news of the policymakers’ efforts from Australia, the US, Japan and the New Zealand seems to have activated the recent pullback in the bullion.

While portraying this, the US 10-year treasury yields recover from the record low of 0.47%, flashed during the early-day, to 0.528% by the press time. Additional recovery could also be witnessed in Asian stocks that are retracing from the initial loss of more than 4.0% to sub-3.0% in most cases.

With the COVID-19 headlines in the stoplight, investors will hardly move anywhere else to search for near-term direction. Should global efforts manage to find a cure for the deadly disease, the latest pullback could result in full-fledged risk-recovery.

Technical Analysis

Friday’s Doji seems to drag the quote towards $1,625, ahead of highlighting $1,611 support. However, an upside break of a rising trend line from January 08, at $1,713 could challenge $1,720 during the further advances.

Additional important levels

Today last price 1662.88
Today Daily Change -11.30
Today Daily Change % -0.67%
Today daily open 1674.18
Daily SMA20 1613.87
Daily SMA50 1580.15
Daily SMA100 1529.33
Daily SMA200 1491.98
Previous Daily High 1692.34
Previous Daily Low 1642.33
Previous Weekly High 1692.34
Previous Weekly Low 1575.58
Previous Monthly High 1689.4
Previous Monthly Low 1547.56
Daily Fibonacci 38.2% 1673.24
Daily Fibonacci 61.8% 1661.43
Daily Pivot Point S1 1646.89
Daily Pivot Point S2 1619.61
Daily Pivot Point S3 1596.88
Daily Pivot Point R1 1696.9
Daily Pivot Point R2 1719.63
Daily Pivot Point R3 1746.91



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