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Gold marks fresh lows in disjointed markets, despite risk-off NY session

  • Gold slides despite a risk-off end to the quarter in disjointed markets.
  • Stock markets were less volatile but COVID-19 risks dominate in an underbelly of uncertainty. 

Gold marked a fresh low on Wall Street during Tuesday's session following a series of offers and despite a risk-off session, (for the most part) and the US dollar losing traction into the end of the quarter. Gold is trading at $1,576.70 at the time of writing in early Asia, -2.27% for the prior 24-hour period having travelled from a high of $1,626.55 to a low of $1,573.80. 

Stock markets were less volatile than they have been in recent sessions, which weighed on gold to an extent. However, the final result was pretty, representing a manic first quarter to the year. More on that here: Wall Street Close: Benchmarks tumble into manic quarter's end

In a snap-shot, the S&P 500 fell 1%, the DAX lifted 1.2% and the FTSE 100 climbed 1.9% while the bond markets were unfazed by Trump’s fiscal plans and as such, the yields on the US 10-year note fell 6bps to 66bps. Looking to the commodity markets, oil was slightly firmer with WTI adding 2% to USD20.5/bbl. The CRB index, however, remained flat, but that's probably a positive in these markets conditions. 

Stimulus measures soothing nerves

"Trump said he wants the next phase of fiscal stimulus to include USD2trn to spend on jobs and infrastructure," analysts at ANZ bank noted. "This spending is equivalent to 9% of nominal GDP and it’s doubtful Congress would approve this level of spending. The Federal Reserve has established a temporary repo facility for foreign central banks and other international monetary authorities, which is expected to help smooth the functioning of financial markets."

Gold levels 

XAU/USD

Overview
Today last price1577.89
Today Daily Change-44.67
Today Daily Change %-2.75
Today daily open1622.56
 
Trends
Daily SMA201593.57
Daily SMA501589.94
Daily SMA1001543.41
Daily SMA2001510.31
 
Levels
Previous Daily High1636.13
Previous Daily Low1611.74
Previous Weekly High1644.54
Previous Weekly Low1482.74
Previous Monthly High1689.4
Previous Monthly Low1547.56
Daily Fibonacci 38.2%1621.06
Daily Fibonacci 61.8%1626.81
Daily Pivot Point S11610.82
Daily Pivot Point S21599.09
Daily Pivot Point S31586.43
Daily Pivot Point R11635.21
Daily Pivot Point R21647.87
Daily Pivot Point R31659.6

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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