- Gold wavers around two-month top, fades day-start gains off late.
- China pushes for gold imports after multiple months of sluggish buying, India’s gold imports also rally.
- US dollar eases amid broad risk-on mood, backed by upbeat US data, faster vaccinations.
- Challenges to US President Biden’s infrastructure plan, geopolitical worries test the bulls.
Gold struggles to extend the heaviest weekly gains of 2021 while taking rounds to $1,775 during the initial Asian session trading on Monday. Even so, weekend news of China’s push for gold imports and the persistent US dollar weakness favor the yellow metal buyers despite challenges from geopolitics and the coronavirus (COVID-19).
Beijing jumps back to bullion buying, USD remains depressed…
After multiple months of sluggish buying of gold, China is back to the game and recently eased restrictions for banks importing the bullion, per Reuters. The news hints at around 150 tons of gold imports versus the recent average of 10 tons and the year 2019 buying of 75 tons per month. Also in the line were chatters of India’s record gold buying of near 160 tons in March. It’s worth mentioning that India and China are the world’s biggest gold consumers and hints of increased buying from the key customers should help the bullion that recently cheered the US dollar weakness.
That said, the US dollar index (DXY) dropped to the fresh low since March 18 on Friday after America’s upbeat housing and consumer sentiment joined the league of strong data from the world’s largest economy, reducing the greenback’s safe-haven demand. Also negative to the US dollar could be the run-up in US equities and sluggish Treasuries.
It’s worth mentioning that the US currency’s latest moves seem to pay a little heed to the coronavirus (COVID-19) fears emanating from India and Europe, not to forget geopolitical tussles between America and China, as well as the US-Russia tensions.
Also likely to have challenged the market risk-sentiment, but not, were chatters surrounding US Republican Party members’ readiness to back the smaller infrastructure spending bill than President Joe Biden’s $2.25 trillion package.
Against this backdrop, S&P 500 Futures print mild losses after refreshing the record top on Friday.
Looking forward, a light calendar in Asia may restrict the yellow metal moves. However, the risk catalysts may test the bulls unless the US dollar extends its downward trajectory.
An ascending trend line from early March, around $1,786, guards immediate upside ahead of the $1,800 round-figure. Alternatively, sellers may not risk entries before witnessing a clear downside break of 50-day SMA level of $1,750.
Additional important levels
|Today last price||1775.83|
|Today Daily Change||1.08|
|Today Daily Change %||0.06%|
|Today daily open||1774.75|
|Previous Daily High||1783.85|
|Previous Daily Low||1759.82|
|Previous Weekly High||1783.85|
|Previous Weekly Low||1723.8|
|Previous Monthly High||1759.98|
|Previous Monthly Low||1676.87|
|Daily Fibonacci 38.2%||1774.67|
|Daily Fibonacci 61.8%||1769|
|Daily Pivot Point S1||1761.76|
|Daily Pivot Point S2||1748.78|
|Daily Pivot Point S3||1737.73|
|Daily Pivot Point R1||1785.79|
|Daily Pivot Point R2||1796.84|
|Daily Pivot Point R3||1809.82|
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.