Gold stays below $1,680 as trade sentiment recovers

With the global policymakers showing action plans to tame coronavirus (COVID-19), Gold buyers trim profits from the multi-year high to $1,671 as most markets in Asia open for trading on Tuesday.

The yellow metal recently took clues from the US Coronavirus Task Force briefings that suggested the US policymakers’ readiness to take measures as well as the availability of sources.

US President Donald Trump said ‘major’ economic measures will be taken in response to the virus while Vice President Mike Pence took a U-turn from Friday’s comments signaling a lack of enough testing kits in the labs. Further, the US Treasury Secretary Steve Mnuchin mentioned his regular conversations with the Fed Chair Jerome Powell while readiness to work with small businesses that need liquidity.

Elsewhere, Bank of Korea said to seek to stabilize markets after the South Korea Finance Ministry cited herd-like behavior in Forex markets.

Recently, Japan’s Finance Ministry confirmed that the US is compiling an economic package to counter the negative implications of the illness. It should also be noted that Japanese Economy Minister Nishimura turned down odds of canceling the Tokyo Olympics.

Also adding to the risk recovery could be the latest numbers from China that show a sustained reduction in the cases and death toll.

Amid all these catalysts, the US equity futures bounce off the previous day’s seller circuit levels to 1.8%, 2,795, whereas the US 10-year treasury yields recover from the record low to 0.64% by the press time.

Investors will now pay close attention to the US President Donald Trump’s press conference, no time specified as of now, to gauge the world’s largest economy’s response to the deadly virus.

Technical Analysis

A bullish spinning top on the daily chart keeps fueling the yellow metal towards an ascending trend line since January 08, 2020, at  $1,715 now.