Gold turns higher for the second straight session, lacks follow-through

A combination of factors assisted gold to reverse an early dip to the $1583 region.
Sliding US bond yields undermined the USD and remained supportive of the uptick.
A slight improvement in the global risk sentiment kept a lid on any runaway rally.

Haresh Menghani FXStreet

Gold spiked to fresh session tops in the last hour, with bulls still awaiting a sustained move beyond the $1600 round-figure mark.

Following the previous day's intraday pullback and a subsequent dip to the $1583 region during the Asian session on Thursday, the commodity turned higher for the second straight session and was being supported by a combination of factors.

Mounting fears over the economic fallout from the coronavirus pandemic amid the ever-increasing cases and broader lockdowns across the world continued lending some support to the precious metal perceived safe-haven status.

The market concerns were further fueled by White House medical experts' warning that as many as 240,000 Americans might die from the respiratory disease, which suggested that the worst of the pandemic is yet to come.

Apart from this, a fresh leg down in the US Treasury bond yields exerted some downward pressure on the US dollar and further benefitted the non-yielding yellow metal, albeit a modest recovery in the US equity future capped gains.

Hence, it will be prudent to wait for some strong follow-through buying before traders start positioning for any further near-term appreciating move as the focus now shifts to Thursday's release of the US initial weekly jobless claims.

Consensus estimates predict that another 3.5 million Americans filed for unemployment benefits during the week ended March 27. The data should influence the USD price dynamics and produce some short-term trading opportunities around the dollar-denominated commodity.

Technical levels to watch

XAU/USD

Overview
Today last price	1592.7
Today Daily Change	1.79
Today Daily Change %	0.11
Today daily open	1590.91

Trends
Daily SMA20	1588.29
Daily SMA50	1590.96
Daily SMA100	1545.87
Daily SMA200	1511.99

Levels
Previous Daily High	1600.7
Previous Daily Low	1568.46
Previous Weekly High	1644.54
Previous Weekly Low	1482.74
Previous Monthly High	1703.27
Previous Monthly Low	1451.3
Daily Fibonacci 38.2%	1588.38
Daily Fibonacci 61.8%	1580.78
Daily Pivot Point S1	1572.68
Daily Pivot Point S2	1554.45
Daily Pivot Point S3	1540.44
Daily Pivot Point R1	1604.92
Daily Pivot Point R2	1618.93
Daily Pivot Point R3	1637.16

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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