Gold: Mildly heavy above $1,700 amid less active markets in Asia
- Gold fails to extend the late Friday's recovery moves.
- A lack of major catalysts keeps the bullion traders clueless amid a broad risk-off wave.
- US virus data keeps challenging the ease of lockdowns, Australia/Japan seem to near the decision.
Gold prices register 0.30% loss on a day while taking rounds to $1,723 as the markets in Tokyo open for trading on Monday. The bullion prices remain under pressure off-lat amid a lack of major catalysts.
The US coronavirus task force briefings have been canceled for Saturday and Sunday whereas the economic calendar in Asia also remains quiet.
Recently, US President Donald Trump witnessed criticism for his suggestion to use disinfectant injections as a trial for the virus treatment. Even so, the Republican leader’s idea of opening up the economy sooner than later guards the risks.
It’s worth mentioning that the US death toll due to the virus surged to 52,459 versus the previous day’s 50,439 whereas the cases surged to 928,619 as of 4:00 PM April 26 against 895,766 at 4:00 PM on April 25, per the data from the Centers for Disease Control and Prevention (CDC).
Alike US, the idea of re-opening the economies are gaining momentum in the UK, Japan and Australia as well.
Amid all these plays, S&P 500 Futures decline 0.20% to 2,823 while the US 10-year treasury yields gain one basis point (bp) to 0.608% by the press time.
Given the lack of major data/events, markets will keep eyes on the virus updates for fresh impulse.
Technical analysis
Lower high formation since flashing the multi-year top surrounding $1,748 seems to gradually drag the bullion towards a five-week-old rising trend line around $1,700. Alternatively, $1,730 and $1,740 offer immediate resistances.
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.
