Gold Price Analysis: XAU/USD fizzles upside momentum above $1,750
- 22nd June 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS, TECHNICAL ANALYSIS
- Gold refreshed monthly high but fails to rise past-$1,758.74.
- Risk reset drags the bullion off-late, catalysts concerning China becomes the key.
- Virus Statistics from Beijing, US President step back from further punitive measures on China favor the risks.
- Fears of the coronavirus wave 2.0 prevail, Sino-American tension still on the cards.
- A light calendar keeps the risk catalysts on the driver’s seat.
Gold prices portray 0.50% gains while trading around $1,752.60 ahead of the European session on Monday. The bullion refreshed the monthly high to $1,758.74 during the early-day but fails to extend the run-up amid risk reset.
Among the major catalysts that renewed the market’s risk-tone sentiment, receding figures of the coronavirus (COVID-19) from mainland China and Beijing seems to offer a key boost to the market’s mood. The reason is the previous pessimism backed by the surge in the statistics from the US, France and Germany, not to forget some parts of Asia.
Also weighing on the pair could be US President Donald Trump’s refrain from announcing further punitive measures on Chinese diplomats involved in the Xinjiang issue.
Though, China’s turning down of the US meat from Tyson and US Secretary of State Mike Pompeo’s discussion with allies, over measures taken on China, seem to keep the Sino-American tension on the table. Additionally, the US attempts to push the ceasefire in Libya as well as geopolitical tensions in Asia are some of the catalysts that keep weighing on the trading sentiment.
As a result, the US 10-year Treasury yields take rounds to 0.69% whereas shares in Asia and the US stock futures recover the early-day losses.
Moving on, the traders will need to keep eyes the virus updates, as well as the US-China story, for fresh direction. Additionally, the US Chicago Fed National Activity Index and Existing Home Sales might offer extra clues for trading.
A sustained break above $1,745 enables the bulls to aim for May month high near $1,765.40. Additionally, an ascending trend line from June 05, currently near $1,726, also favors the bulls.
ADDITIONAL IMPORTANT LEVELS
|Today last price||1752.65|
|Today Daily Change||8.51|
|Today Daily Change %||0.49%|
|Today daily open||1744.14|
|Previous Daily High||1745.46|
|Previous Daily Low||1721.61|
|Previous Weekly High||1745.46|
|Previous Weekly Low||1704.28|
|Previous Monthly High||1765.38|
|Previous Monthly Low||1670.72|
|Daily Fibonacci 38.2%||1736.35|
|Daily Fibonacci 61.8%||1730.72|
|Daily Pivot Point S1||1728.68|
|Daily Pivot Point S2||1713.22|
|Daily Pivot Point S3||1704.83|
|Daily Pivot Point R1||1752.53|
|Daily Pivot Point R2||1760.92|
|Daily Pivot Point R3||1776.38|