Gold flirting with multi-day lows, below $1475 level
- Gold remained depressed for the second consecutive session on Thursday.
- A global rush to hoard cash benefitted the USD and exerted some pressure.
- The risk-off mood, sliding US bond yields helped limit losses, at least for now.
Gold edged lower through the mid-European session and dropped to three-day lows, around the $1465 region in the last hour.
The precious metal continued with its struggle to move back above the very important 200-day SMA, rather witnessed some fresh selling near the key $1500 psychological mark and held weaker for the second consecutive session on Thursday.
Investors scrambled for cash amid growing fears of a global recession led by the coronavirus pandemic, which benefitted the US dollar's status as the global reserve currency and undermined demand for the dollar-denominated commodity.
The downtick seemed rather unaffected by the ongoing downward spiral in the global equity markets. Even some renewed weakness in the US Treasury bond yields did little to provide any meaningful boost, albeit seemed to help limit deeper losses.
It will now be interesting to see if the commodity is able to attract any meaningful buying interest at lower levels or aim towards challenging YTD lows, around the $1450 region, which if broken should pave the way for a further near-term downfall.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
