Gold snaps two-day winning streak to slip below $1,750
- Gold prices ease from three-day high around $1,754.
- US dollar recovers losses from 14-day low amid risk reset.
- US-China tussle back in focus, virus data also weigh on trading sentiment.
Despite bouncing off intraday low of $1,742.80, Gold prints 0.20% loss while taking rounds to $1,745 amid the initial trading session on Thursday. In doing so, the bullion snaps the previous two-day winning streak as the US dollar bounces back from multi-day low amid risk reset.
In addition to the initial Washington Post news suggesting further US-China drama, US President Donald Trump’s latest tweets also indicate a wider difference between the world’s top two economies.
Also exerting downside pressure on the risks could be the global coronavirus counts that recently crossed five million mark. More importantly, the increase in the North American cases doubts the earlier hopes of economic restart and weigh on the trading sentiment.
That said, US 10-year Treasury yields drop 1.3 basis points (bps) to 0.67% whereas S&P 500 Futures mark 0.51% losses and Japan’s NIKKEI trim early gains to +0.15% by the press time.
On the other hand, the US dollar index (DXY), a gauge of the greenback versus major currencies registers 0.20% gains to 99.37 while bouncing off the lowest since May 01.
Although no major data/event is up for publishing during the Asian session, preliminary activity numbers for May can offer a busy US session looking forward.
Technical analysis
Unless successfully break a short-term horizontal resistance around $1,752/54, gold prices are less likely to refresh the monthly top of $1,765.38. As a result, sellers are likely targeting $1,740 as immediate support during the further declines ahead of 200-HMA around $1,726/25.50.
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.
