On Tuesday, the precious metal gold prices slipped over 1%, reversing from a near one-month high hit earlier in the session, as symptoms of less than before coronavirus patients in major epicenters fueled equity markets, pulling away some of the gold safe-haven demand.
The yellow-metal prices broke its early consolidation phase and hit the 1-week high near the $1660 mark in the last hour. Whereas, the gold traders did not give any significant attention to the goodish pickup in the US bond yields as well. The gold is currently trading at 1,665.60 and consolidates in the range between the 1,638.30 – 1,669.95.
The buyers of gold ignored robust recovery in the global risk sentiment, which is supported by a reduction in the number of deaths from COVID-19 and which tends to weaken the metal’s perceived safe-haven demand. Meanwhile, the risk-on sentiment was further strengthened by a strong pickup in the US Treasury bond yields.
Daily Support and Resistance
Pivot Point 1651.78
A day before, the precious metal gold violated an ascending triangle, which was providing resistance at 1,636 level, and now it’s working as solid support. Closing of candles above this level is suggesting chances of more buying until the next resistance level of 1,671. While support continues to hold around 1,650 and then 1,636. The leading indicator MACD is also supporting the bullish trend in gold.
Gold has shown some correction as it dropped today from 1,673 high to 1,650 level, but now it’s time to expect another bullish rally. Let’s consider taking bullish trades over 1,650 levels to target 1,662 and 1,671. Good luck!