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Gold climbs to near 1-week tops, around $1575 level

  • Gold edges higher for the fourth straight session on Monday.
  • Concerns over coronavirus remained supportive of the uptick.
  • The USD held steady near four-month tops and capped gains.

Gold price edged higher on the first day of a new trading week and rose to near one-week tops, around the $1576-77 region, albeit lacked any strong follow-through.

The precious metal traded with a mild positive bias for the fourth consecutive session on Monday and was being supported by growing concerns about the economic effect of the deadly coronavirus.

Gold supported by coronavirus uncertainties

According to the latest data released by the Chinese government this Monday, the continuous spread of the virus has now affected over 40,000 in the country and has resulted in over 900 deaths so far.

Market worries were evident from the prevailing cautious mood around equity markets, which turned out to be one of the key factors extending some support to the commodity's perceived safe-haven status.

The risk-off flow was reinforced by a turnaround in the US Treasury bond yields, which further provided a modest lift to the non-yielding yellow metal, albeit the uptick lacked bullish conviction.

The US dollar has managed to preserve its recent strong gains and held steady near four-month tops, which might eventually keep a lid on any runaway rally for the dollar-denominated commodity.

Hence, it will be prudent to wait for some strong follow-through buying before positioning for any further near-term appreciating move amid absent relevant market-moving economic data.

Technical levels to watch

 

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