Gold drops from fresh weekly top to intraday low around $1,710 amid mixed catalysts
Gold prices seesaw in the last hour, from the fresh weekly top of $1,719.38 to intraday low of $1,709.36, during the early Thursday. While upbeat comments from the PMs of Australia and New Zealand might have escalated the previous day’s risk-on, fears emanating from China and the US seem to check the optimists.
In addition to the Aussie PM Morrison’s signal to ease the lockdown, upbeat preliminary figures of Australian trade data for March might also have contributed positively to the risks. Further, New Zealand PM Jacinda Ardern also said that her government is looking at all options to stimulate the economy.
Gold Price Analysis: Probes weekly resistance trendline above $1,700
Following its surge from $1,660, Gold stays an inch closer to the weekly resistance trend line while taking rounds to $1,714 amid the early Thursday morning in Asia. Not only a seven-day-old falling trend line but MACD histogram also questions the bullion’s further run-up beyond $1,719 trend line resistance. As a result, sellers will look for entries below the immediate support line, currently around $1,697.50, while targeting to revisit the $1,660 area.
Meanwhile, an upside clearance of $1,719 will have to cross $1,739/40 horizontal area before questioning the mid-month top, also a multi-year high, near $1,748.
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