- Gold prices recover the early-day declines amid fresh risk aversion.
- Upbeat numbers from China, South Korea and Germany fail to cover pessimism concerning the US.
- A light economic calendar keeps virus updates as the key.
Despite marking no major gains on a day, Gold prices extend the latest recovery moves from $1,680 while taking rounds to $1,684 by the press time of early Monday. Although receding risks of coronavirus from the earlier hotspots seem to have weighed on the bullion, the challenges to the US are likely favoring the market’s rush to risk-safety. Even so, the Easter Monday holiday in major countries seems to limit the safe-havens moves.
China’s Hubei registers one more day without any fresh cases of the coronavirus (COVID-19) whereas South Korea’s pandemic cases recently dropped to the seven-week low. Further, data from Germany also cites the three-week low in the daily rise while adding 2,537 fresh cases to 123,016 on April 13.
On the other hand, the numbers of cases from the US have crossed 556,000 mark, as per CNN, while the death toll rose to 22,073 according to data from Johns Hopkins University.
While citing the fears of the pandemic outbreak, Minneapolis Fed President Neel Kashkari earlier said that the US economy faces 'long, hard road' to recover from coronavirus.
To portray the risk aversion, the US stock futures register more than 1.0% losses by the press time whereas Japan’s NIKKEI also declines 1.50% to 19,070 by the time of writing.
Even if a lack of major data/events could keep gold trading choppy, risk aversion could keep the buyers hopeful. It should also be noted that the US dollar has recently witnessed a pullback and could challenge the buyers.
Technical analysis
An ascending trend line from March 20, currently near $1,680, could keep short-term declines limited. Meanwhile, buyers await a clear break above $1,700 to question the previous month high surrounding $1,703.
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
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.