On Tuesday, the precious metal gold continues to trade higher around 1,730 area in the wake of increased safe-haven appeal driven by COVID 19. Furthermore, the early-day upbeat remarks from the U.S. Task Force Briefings, news from the U.K. also recommend the coronavirus (COVID-19) is near to its expected high’s. The same could negatively influence the gold’s safe-haven appeal that has lately fired the bullion to the highest since November 2012.
The U.S. President Donald Trump is showing a willingness to support the USA fight against the coronavirus (COVID-19), which eventually seems to help the risk-tone. This time, the Fed will elevate about $2.3 trillion to promote small and medium-sized companies, districts and workers harmed by the coronavirus break.
Apart from this, the recent recovery in the Asian equity and continued rise in the U.S. 10-year Treasury yields, which is currently near 0.773%, provided support to the oil prices recover. The better-than-expected Chinese trade data also give confidence to the oil buyers.
Technically, the XAU/USD has the potential to go long, which is why we have opened a buying signal at 1728.27 with a stop loss of around 1718.27 and take a profit of 1738.27. The bullish channel likely keeps the gold prices higher, while the RSI and MACD are suggesting a continuation of a bullish bias in the gold. On the higher side, gold has the potential to go after 1,743 level today.