Gold seesaws around $1,630 as coronavirus woes prevail
- Gold prices fail to hold onto early-day uptick.
- US stock futures, treasury yields down amid risk-off.
- US President Trump extends social-distancing until April 30, Japan's government to extend the entry ban.
Global markets continue to struggle with the coronavirus (COVID-19) pessimism as Gold takes rounds to $1,630, currently up 0.10% near $1,628, amid Monday’s Asian session. While the weekend headlines suggested US President Donald Trump removing quarantine from the hot-spot, the latest extension to social-distancing till April 30 seems to weigh on the risk-tone.
US President Trump, in his latest Coronacvirus Task Force Briefings, said to extend the social distancing till April 30. The Republican leader also anticipated that the highest point in death rates from the virus is likely to hit in two weeks. However, his teammates like Anthony S. Fauci and Deborah Birx might not agree as they earlier projected a heavy increase in the pandemic death toll and infection numbers.
Japan government is also considering expanding entry ban to those traveled from the US, China, South Korea and most of Europe, as per Reuters. On the other hand, the BOJ cited capital buffer and liquidity requirements as countermeasures to the central bank’s Open Market Operations (OMO).
Elsewhere, the UK Telegraph relies on the National Health Services (NHS) London Trust to say that the intensive care for coronavirus patients now limited to those 'reasonably certain' to survive.
The trade sentiment continues to dwindle with the 10-year US Treasury yields extending the previous downside by seven basis points (bps) to 0.667% by the press time. Also portraying the risk-off are the US stock futures and Japan’s NIKKEI.
Given the lack of major data/events, investors may keep eyes on virus headlines and measures to combat the pandemic for fresh impulse. It’s worth mentioning that the US dollar is retracing some of its latest losses and might limit the yellow metal’s advances.
Technical analysis
Buyers are waiting for a sustained move beyond $1,645 to accelerate the gradual recoveries from the 21-day SMA level of $1,595.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
