Gold Price Analysis: XAU/USD extends losses below $1,730 amid broad risk-on sentiment
- 3rd June 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS, TECHNICAL ANALYSIS
- Gold prices print two-day losing streak with an intraday low of $1,720.87.
- US President’s step back from using further military powers to tame the riots fuelled the risk-on sentiment off-late.
- Cautious optimism surrounding the coronavirus vaccine, hopes of economic restart also weigh the bullion.
- US data, headlines concerning the protests, virus and US-China relations will be important to watch.
Gold prices drop to $1,725.96, down 0.12% on a day, amid the Asian session on Wednesday. Recent market optimism seems to have weighed on the precious metal as headlines from the US start flashing positive signals.
Among them, the Axios’ news suggesting US President Donald Trump’s step back from the threat of using more military power to tame the protests seem to have gained major attention.
Also, cautious optimism by the key US medical professional, coupled with the economic restart in Europe, might have pleased the risk-takers as well.
With that in the backdrop, the US 10-year Treasury yields gain 1.8 basis points (bps) to 0.697% whereas stocks in Japan, Australia and China also flash gains during the initial hour of trading.
Even so, the broad weakness of the US dollar and uncertainty surrounding the pandemic’s global economic impact restrict the bullion’s downside.
A sustained break below 21-day EMA level of $1,720 becomes necessary for the bears to revisit a six-week-old support line near $1,700. Until then, fears of the quote’s another attempt to challenge the May month high of $1,765.40 can’t be ruled out.
ADDITIONAL IMPORTANT LEVELS
|Today last price||1725.7|
|Today Daily Change||-1.98|
|Today Daily Change %||-0.11%|
|Today daily open||1727.68|
|Previous Daily High||1745.12|
|Previous Daily Low||1721.71|
|Previous Weekly High||1737.78|
|Previous Weekly Low||1693.78|
|Previous Monthly High||1765.38|
|Previous Monthly Low||1670.72|
|Daily Fibonacci 38.2%||1730.65|
|Daily Fibonacci 61.8%||1736.18|
|Daily Pivot Point S1||1717.89|
|Daily Pivot Point S2||1708.09|
|Daily Pivot Point S3||1694.48|
|Daily Pivot Point R1||1741.3|
|Daily Pivot Point R2||1754.91|
|Daily Pivot Point R3||1764.71|