On Wednesday, the precious metal gold prices firmed as investors sought safe-haven securities following the U.S. economic figures, which heightened concerns of an economic slowdown amid growing global constraints and lockdowns to fight the coronavirus pandemic.
Gold prices fell nearly 0.9% at $1,585.08 an ounce during the U.S. session as the release of Advance Nonfarm payroll seems to have a muted impact on gold prices. The United States Federal Reserve has proved a temporary repo facility for foreign central banks and other international monetary authorities.
Hence, this should continue to decrease the bullish pressure on the greenback and possibly move the ball into sellers court. Selling in the U.S. dollar can support gold, but right now, we aren’t seeing any significant movement in the market.
The G20 finance ministers and central bankers meet bankers’ to come up with any meaningful results apart from committing to previous commitments given to respond to COVID-19. In addition to the current meeting, the next meeting is due on 15 April, which keeps the uncertainty high in the financial and commodities markets.
Lastly, intensifying fears about an expected global recession further benefitted the USD’s safe-haven status, which helps improve dollar prices, while driving selling pressure on gold.
On the technical front, the precious metal is trading at 1,585 level, having immediate support at 1,577 and resistance at 1,600 level for now. Bullion has completed 50% Fibonacci retracement until 1,577 level, and violation of this level can open up further room for selling until the next support level of 1,548, which marks the 61.8% Fibo level.
XAU/USD – Daily Technical Levels
Pivot Point 1,590.28
On the higher side, a bullish breakout of 1,600 level can extend buying until 1,620 and 1,635 level. Consider staying bearish below 1,600 level today. Good luck!