Gold Price Analysis: XAU/USD sellers attack $1,730 as risk-off mood continues

Gold prices consolidate after the initial downtick.
Increasing risks of virus wave 2.0 confront upbeat comments from the Fed’s Kaplan.
China’s data can offer immediate direction, Powell’s testimony will be the key during the week.

Anil Panchal FXStreet

Gold seesaws around $1,731, intraday low of $1,728.04, during the initial Monday morning in Asia. The yellow metal recently weighed as weekend news keeps the risk of the coronavirus (COVID-19) outbreak 2.0 on the cards. In doing so, the bullion seems to ignore upbeat comments from the Dallas Federal Reserve President Robert Kaplan.

As per the latest update from the Tokyo Metropolitan Government the numbers of COVID-19 cases rose by 47, the highest since May 05. On the other hand, Beijing also reemployed the partial shutdown following the increase in the virus cases around the Xinfadi food market in the Southern Fengtai district. Elsewhere, Reuters spotted the record pikes in new virus cases, hospitalizations in the US.

It should also be noted that the protest in America and fears of few more sober statements from the Fed Chair Jerome Powell, during this upcoming testimonies, also weigh on the market’s trading sentiment. Even so, Fed’s Kaplan anticipates a recovery in the US job numbers from June while keeping previous pessimism surrounding the yearly unemployment rate.

Against this backdrop, S&P 500 Futures drop over 1.5% to 2,977 by the press time.

Traders might keep eyes on the Fed and the virus updates for fresh impulse. Further, China’s May month data dump, comprising Industrial Production and Retail Sales, will decorate the economic calendar and is worth observing as well.

Technical analysis

The buyers are likely stepping back from the monthly top surrounding $1,745/46. Even so, a 21-day SMA level near $1,723 seems to restrict the bullion’s immediate downside.

Additional important levels

Overview
Today last price	1730.98
Today Daily Change	0.40
Today Daily Change %	0.02%
Today daily open	1730.58

Trends
Daily SMA20	1722.94
Daily SMA50	1709.03
Daily SMA100	1650.5
Daily SMA200	1574.29

Levels
Previous Daily High	1743.09
Previous Daily Low	1722.44
Previous Weekly High	1744.75
Previous Weekly Low	1677.73
Previous Monthly High	1765.38
Previous Monthly Low	1670.72
Daily Fibonacci 38.2%	1735.2
Daily Fibonacci 61.8%	1730.33
Daily Pivot Point S1	1720.98
Daily Pivot Point S2	1711.39
Daily Pivot Point S3	1700.33
Daily Pivot Point R1	1741.63
Daily Pivot Point R2	1752.69
Daily Pivot Point R3	1762.28

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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