Gold rallies further beyond $1500 mark, fresh session tops

Gold continued gaining some positive traction through the early European session and shot to fresh daily tops, around the $1514-15 region in the last hour.

The precious metal once again managed to attract some buying ahead of the $1450 strong horizontal support – or YTD lows set at the beginning of this week – and snapped two consecutive days of losing streak. The early Asian session downtick remained limited amid mounting fears over the economic crisis from the coronavirus pandemic.

This coupled with some aggressive US dollar long-unwinding trade provided a goodish lift to the dollar-denominated commodity. A coordinated effort by central banks across the world helped ease market concerns about tightening liquidity conditions and prompted some USD profit-taking, all against the backdrop of the recent strong bullish run.

Meanwhile, the intraday positive move back above the key $1500 psychological mark seemed rather unaffected by a goodish recovery in the global risk sentiment, which tends to undermine demand for traditional safe-haven assets, including gold.

It, however, remains to be seen if the commodity is able to capitalize on the momentum or the move up is utilized as an opportunity to initiate some fresh bearish positions, all against the backdrop of the recent fall below the very important 200-day SMA for the first time since December 2018.

Technical levels to watch