- Gold holds lower grounds after the previous day’s downbeat performance.
- Vaccine jitters join geopolitical challenges but Fed’s cautious optimism helps S&P 500 Futures.
- US dollar weakness tests the bears amid dull markets.
Gold remains pressured around $1,736 amid the initial Asian session trading on Thursday. The yellow metal dropped for three days in the last four even as the US dollar index (DXY) remains dismal around a one-month low. The reason could be traced from vaccine jitters as well as a lack of major news in the market.
Nothing impresses gold buyers….
Although DXY dropped to the lowest since March 18, gold stays pressured as markets remain unimpressed by a lack of major data/events as well as the market’s wait for US President Joe Biden’s $2.25 trillion infrastructure package.
Also testing the yellow metal buyers is the same old wordings from the Fed policymakers and Beige Book that suggests moderate economic recovery while shrugging off tapering at least until 2022.
Furthermore, Johnson & Johnson’s vaccine stays blacklisted following blood-clotting issues whereas the US cancels deploying warships to the Black Sea. Additionally, news that Saudi led coalition destroyed explosive-laden drone fired in the direction of Jazan also couldn’t fill life to the party.
Against this backdrop, Wall Street benchmarks closed mixed after refreshing record tops whereas S&P 500 Futures print mild gains by the press time. It’s worth mentioning that the US 10-year Treasury yields recover some of its early-week losses by flashing 1.3 basis points 9bps) of gains to 1.63% by the press time.
Given the sluggish markets and an absence of fresh catalysts, gold prices may stretch the latest downbeat performance amid mild challenges to the sentiment. However, today’s US Retail Sales data will be the key to watch, not to forget vaccine and geopolitical news, as well as updates on US President Biden’s infrastructure spending.
Technical analysis
Failures to keep a bounce off 200-SMA highlights $1,726 as the key immediate support unless the quote stays positive beyond $1,750.
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 steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.