Gold Price Analysis: Corrects lower from tops around $1,690/oz

Prices of the yellow metal recedes from recent highs.
The Fed’s latest stimulus package helped the metal’s upside.
US CPI results coming up next on the docket.

Pablo Piovano FXStreet

Prices of the ounce troy of the precious metal are fading part of Thursday’s advance to fresh monthly highs in the $1,690 region.

Gold surges post-Fed, looks to CPI

Gold prices surged to the highest level since March 9 in the wake of another stimulus package unveiled by the Federal Reserve on Thursday. This time, the Fed will pump around $2.3 trillion to support small and medium-sized businesses, municipalities and workers hurt by the coronavirus outbreak.

In fact, after two consecutive daily declines, prices of the safe haven metal rose sharply on Thursday in response to the Fed’s latest stimulus measures, while remain supported by the increasing liquidity in the global markets (following global easing from central banks) and the impact of the coronavirus fallout.

In the meantime, the ounce troy of gold has practically fully retraced the March decline and is already trading at shouting distance from yearly highs just above the $1,700 mark (March 9).

Moving forward, US inflation figures gauged by the CPI will be the salient event in the calendar on Good Friday along with the publication of the Monthly Budget Statement.

Gold key levels

As of writing Gold is losing 0.40% at $1,675.00 and faces the next support at $1,608.25 (38.2% Fibo of the December-March rally) followed by $1,598.15 (55-day SMA) and then $1,567.80 (monthly low Apr.1). On the other hand, a breakout of $1,690.33 (monthly high Apr.9) would expose $1,703.60 (2020 high Mar.9) and then $1,723.30 (monthly high December 2012).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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