Gold off highs, still positive above $1,650 amid mild risk-on

Gold benefits from a sustained risk recovery.
Receding cases from Europe, upbeat statement from US President Trump favor the yellow metal off-late.
Coronavirus updates, global policymakers’ policies to combat the virus remain as the key catalysts.

Anil Panchal FXStreet

Gold steps back from an intraday high of $1,674.15 to $1,663 during Tuesday’s Asian session. Even so, the yellow metal registers 0.20% gains while also staying near to the recently flashed four-week high.

The yellow metal’s recent upside could be attributed to the market’s risk recovery based on the improvements in the coronavirus (COVID-19) data from Italy and Spain, as well as US President Donald Trump’s readiness to announce another aid package to combat the virus.

Also supporting the risk-on sentiment are Japan’ PM Shinzo Abe’s signals for the stimulus and China’s pandemic details.

It’s worth mentioning that the US President also cited China’s purchase worth of $40-50 billion of the US agricultural products while also asking for help from the dragon nation to fight against the deadly virus. The recent data from China’s Hubei suggests a sustained no new cases of the disease on April 06.

Amid all these catalysts, US 10-year treasury yields remain positive around 0.68% whereas stocks in China and Japan also mark gains by the press time.

Investors will now wait for fresh virus updates and/or the global policymakers’ combat for further impetus.

Technical analysis

While the yellow metal’s sustained trading beyond March 26 top suggests its further upside, an ascending trend line since March 13, 2020, near $1,685, seems to be the immediate resistance to watch. On the downside, the metal’s declines below March 26 high around $1,645 can drag the quote to a short-term rising support line around $1,624.

Additional important levels

Overview
Today last price	1662.98
Today Daily Change	3.46
Today Daily Change %	0.21%
Today daily open	1659.52

Trends
Daily SMA20	1581.43
Daily SMA50	1594.44
Daily SMA100	1550.69
Daily SMA200	1515.43

Levels
Previous Daily High	1669.3
Previous Daily Low	1609.15
Previous Weekly High	1636.13
Previous Weekly Low	1568.46
Previous Monthly High	1703.27
Previous Monthly Low	1451.3
Daily Fibonacci 38.2%	1646.32
Daily Fibonacci 61.8%	1632.13
Daily Pivot Point S1	1622.68
Daily Pivot Point S2	1585.84
Daily Pivot Point S3	1562.53
Daily Pivot Point R1	1682.83
Daily Pivot Point R2	1706.14
Daily Pivot Point R3	1742.98

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.

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