- Gold remains sluggish around $1,950 after declining from $1,951.86 at the week’s start.
- Virus woes return to the table but hopes of further stimulus seem battling the safe-haven bulls.
- US-Iran and Sino-American tussles continue, Brexit headlines offer mixed clues.
- Fed Chair Powell’s speech will be the key.
Gold prices remain pressured at $1,948.10, down -0.13% intraday, during the pre-Tokyo open Asian trading on Monday. The yellow metal marked gains during the previous two weeks as the US dollar’s downbeat performance favored the bulls cheering risk-off sentiment. Though, buyers seem to await major signals to extend the weekly moves while carrying the recently sluggish intraday moves.
Pessimism continues but with asterisk…
Although coronavirus (COVID-19) risk in Europe is mounting and the trade-political tension between the US and China continues, the risk-aversion wave isn’t taking a turn towards the precious metals off-late. The reason could be traced from the hopes of heavy stimulus from the UK and Japan even as the American policymakers dwindle in announcing the much-awaited stimulus package.
Elsewhere, Tehran and Washington are also probing each other and the US is about to slap over two dozen companies for helping the Arab nation in building arms. Furthermore, China battles the US, India and some other Asian nations like Taiwan, Hong Kong and Thailand silently but the latest comments from President Xi Jinping suggested that the world’s second-largest economy is recovering.
During the last week, hints of prolonged monetary easing from the US Fed, BOJ and BOE seem to have favored the bullion buyers amid the further weakening of the major currencies, especially the US dollar. However, the market’s optimism towards the American leadership hint otherwise.
Against this backdrop, S&P 500 Futures drop 0.34% to 3,305 by the press time. Global equities have been declining for the last two weeks and add a feather into the golden crown.
Moving on, the Asian economic calendar is mostly silent and hence the risk catalysts become the key to watch ahead of Federal Reserve Chairman Jerome Powell’s speech, up at 14:00 GMT. Global traders will seek clues of last week’s optimism to recall the USD bulls, which in turn may weigh on gold prices.
Technical analysis
Repeated bounces off 50-day SMA, currently around $1,940, favor buyers targeting a break of the one-month-old falling trend line near $1,960.
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 trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
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.