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.
On the other hand, the headline recently gave support to the gold prices that the 3-Swiss refineries in Ticino, Europe’s biggest gold refiner, announced yesterday that they got permission to open their factories on the limited basis. Whereas, this statement will ease the supply concerns which are caused by the coronavirus lockdowns and transport stops.
At the coronavirus front, COVID-19 weekend news is flashing recession fears and updates to the debacle, COVID-19, which has risen 1,253,919 global cases, 68,169 deaths, and 257,221 recoveries.
Daily Support and Resistance
- S1 1576.16
- S2 1596.66
- S3 1607.74
Pivot Point 1617.15
- R1 1628.24
- R2 1637.65
- R3 1658.14
On the technical front, the precious metal gold has violated the ascending triangle which was providing resistance at 1,636 level. 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 1,635. The leading indicator MACD is also supporting the bullish trend in gold.
Gold seems to close three consecutive bullish candles on the 4-hour timeframe, which will become three white soldiers and will drive more buying until 1,671 level. Consider taking bullish trades over 1,636 levels to target 1,656 and 1,671. Good luck!