- Gold picks up bids, prints second positive day following Monday’s heavy drop to the late-September low.
- Asian shares stay positive in early trade, US stock futures keep the mildly grim tone.
- Virus woes, updates on vaccine research probe earlier hopes.
- US holiday can restrict market moves, risk catalysts to keep the driver’s seat.
Gold extends the previous day’s recovery moves to $1,878.60, up 0.31% intraday, as markets in Tokyo open for Wednesday’s trading. The yellow metal slumped to the September 28 bottom on Monday before bouncing off $1,850.56. Although the US dollar’s inability to hold the early-week gains help the precious metal buyers, a light calendar in Asia and mixed signals from the key risk areas may continue challenging the commodity traders.
Stimulus hopes keep the buyers hopeful…
With a halt in China’s vaccine trials in Brazil, due to the death of a volunteer, pours cold water on the face of the market optimism, US President-elect Joe Biden’s readiness to pump the world’s largest economy, recently by healthcare measures, support the market’s optimism. Also on the positive side could be the hopes from Europe and China that Biden’s victory will offer a fresh start to their trade relations that have been noisy during Donald Trump’s ruling.
On the contrary, the return of the coronavirus (COVID-19) death toll to the early-pandemic era joins the US-China tussle and Trump’s efforts to keep the White House challenge the risk-on mood.
Amid all these plays, S&P 500 Futures print mild losses, down for the second day, whereas shares in Japan, Australia and New Zealand print gains above 1.0% by press time.
Considering the lack of clear direction following the recent drop, coupled with the holiday in the US, Gold prices are likely to extend recovery moves amid hopes of covid vaccine and further stimulus. Though, any surprises from the US polity will not refrain from taking down the yellow metal.
Unless declining past-September month’s low near $1,848.80, short-term gold buyers can stay to revisit the October high surrounding $1,933. Though, the $1,900 may offer an intermediate halt during the recovery.
Additional important levels
|Today last price||1878.64|
|Today Daily Change||5.74|
|Today Daily Change %||0.31%|
|Today daily open||1872.9|
|Previous Daily High||1890.46|
|Previous Daily Low||1856.4|
|Previous Weekly High||1960.4|
|Previous Weekly Low||1873.52|
|Previous Monthly High||1933.3|
|Previous Monthly Low||1860|
|Daily Fibonacci 38.2%||1877.45|
|Daily Fibonacci 61.8%||1869.41|
|Daily Pivot Point S1||1856.05|
|Daily Pivot Point S2||1839.19|
|Daily Pivot Point S3||1821.99|
|Daily Pivot Point R1||1890.11|
|Daily Pivot Point R2||1907.31|
|Daily Pivot Point R3||1924.17|
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