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

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.