- The prevalent USD selling bias assisted gold to attract some dip-buying.
- The risk-on environment capped the upside for the safe-haven commodity.
- Sustained move beyond $1748 needed to confirm a near-term bullish bias.
Gold reversed an early dip to the $1735 region and has now moved back closer to over one-week tops set in the previous session.
The global risk sentiment remained well support by growing optimism over the global economic recovery. The same was evident from a positive trading sentiment around the equity markets, which exerted some pressure on the precious metal's safe-haven status.
However, the prevalent US dollar bearish pressure helped limit any meaningful downfall for the dollar-denominated commodity. The greenback remained depressed in the wake of the widespread protests in dozens of American cities over the death of George Floyd.
This comes amid concerns about worsening relations between the United States and China, which further cushioned the downside for the commodity. In the latest development, China halted orders of US agricultural products, including soybeans, and also cancelled some pork orders.
Despite the supporting factors, the yellow metal lacked any strong bullish conviction. Investors now seemed to wait for a fresh catalyst in order to determine the commodity's near-term trajectory. This warrants some caution before placing any aggressive directional bets.
Even from a technical perspective, the commodity needs to find bullish acceptance above the recent daily closing highs resistance near the $1748 level. Above the mentioned level, bulls are likely to aim to retest multi-year swing highs, around the $1765 area.
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.