- Gold keeps recovery moves from $1,864 despite recently easing from $1,896.
- Moderna’s vaccine trials keep markets hopeful despite virus woes.
- Brexit news, updates from Johnson & Johnson offer the latest positive push.
- Risk catalysts to keep the driver’s seat amid a light calendar.
Gold picks up bids around $1,888, up 0.07% on a day, during the early Tuesday’s Asian session. The yellow metal recently gained, after the initial $30 drop, as global markets turned optimistic on the coronavirus (COVID-19) vaccine. Also favoring the risk-on mood could be the Brexit news as well as the US dollar weakness.
J&J, Moderna keeps markets upbeat…
Having earlier heard that Moderna’s vaccine has a 94.5% effective rate and is easy to distribute, AP News recently came out with the headlines suggesting the start of the two-dose vaccine trials from Johnson and Johnson. Global markets are optimistic to find a cure to the major disease that has roiled macros so far in 2020. In doing so, bulls are also watching over the US covid fashion that indicates local lockdowns. On the other hand, virus conditions in Europe and the UK have been recovering off-late, though not much positive.
Elsewhere, news that the much-awaited Brexit trade deal between the European Union (EU) and the UK, can be expected early next week, as per The Sun, also favored the risk-tone sentiment.
That said, S&P 500 Futures look for clear direction while taking rounds to 3,625/30 after Wall Street closed on the positive side by the end of Monday’s trading session.
Given the recent positive updates concerning the virus vaccine and Brexit, gold prices can keep the last week’s recovery moves from September lows. Though, challenges to the reopening plans in some of the US states may offer intermediate stop to the buyers.
Technical analysis
Unless breaking 50-day EMA, currently around $1,899.50, gold bulls remain cautious. Meanwhile, 100-day EMA and the recent lows, respectively near $1,876 and $1,850, restrict the metal’s short-term downside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD bounces off lows, back near 1.1330
EUR/USD meets daily support around the 1.1300 neighbourhood, managing to regain pace and revisit the 1.1330 region. Sentiment turned after President Trump proposed a “straight 50% tariff” on European imports, undermining the pair’s bullish momentum.
GBP/USD eases from tops, revisits the 1.3500 zone
GBP/USD benefits from broad US Dollar weakness, climbing to its highest level since February 2022 past 1.3500 at the end of the week. UK retail sales data surprised to the upside in April, lending extra wings to the quid.
Gold keeps the bullish tone near $3,350
Gold extends its weekly advance, trading around $3,350 per troy ounce on Friday. The rally in XAU/USD is driven by broad-based weakness in the Greenback, particulalry after President Trump’s threat to impose 50% tariffs on European imports.
Apple stock sinks below $200 after Trump threatens more tariffs Premium
Trump grows irate at Apple's move into India. President claims Apple must produce US-sold iPhone in US or face a 25% tariff. US equity futures slip more than 1% in Friday premarket after Trump threatens the EU with a 50% tariff.
Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution
XRP sustains mid-week recovery as XRP/BTC flashes golden cross for the first time since 2017. Large volume holders increase XRP exposure, indicating rising demand and investor confidence.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.