OctaFX | OctaFX Forex Broker
Open trading account
Back

Gold prices recover further beyond $1,500 amid risk reset

  • Gold prices gradually recover from a four-month low.
  • Risk-tone recovers following the bloodbath in global equities.
  • The US coronavirus relief bill is in the news while the Philippines suspends FX and Bond trading.

While retracing losses from the multi-week low, marked the previous day, Gold prices register 0.36% gains to $1,512 amid the initial Asian session on Tuesday. Although the Monday-end pullback might have helped the yellow metal to recover some of its latest losses, the broad risk aversion remains in play, which in turn questions the buyers.

Risk reset in play…

Having witnessed a powerful show of risk aversion, the global financial markets are witnessing risk reset amid news concerning the US Coronavirus Relief Bill. The Republican-backed bill recently crossed House of Representatives and will be voted in the Senate. However, Treasury Secretary Steve Mnuchin is trying hard to include suggestions from fellow policymakers before they vote on US President Trump’s ‘major’ economic package to ward off the negative implications of the virus.

On the other hand, numbers from China continue to dwindle but offered no relief whereas the Philippines’ suspension of Forex and Bond seems to catch the market attention. Further, Japan’s Finance Minister suggested holding calls with G7 finance ministers on Tuesday.

That said, the US 10-year treasury yields stay mildly positive near 0.772% while stocks in Japan lose 0.30% to 16,990.

Considering the COVID-19 impact on the markets, traders will pay a little heed to economic calendar unless any top-tier data/event is up for publishing. In that case, the US Retail Sales for February, expected 0.2% versus 0.3% prior on MoM, will be important to follow.

Technical Analysis

Sellers will look for sustained trading below a 200-day SMA level near $1,500 to target November 2019 low surrounding $1,445. Alternatively, 100-day SMA around $1,535 acts as the immediate upside barrier.

 

Venezuela's Maduro says the value of a barrel of Venezuelan oil is today below the costs of production

In the same breath of reporting the numbers of coronavirus cases, Venezuela's Maduro said the value of a barrel of Venezuelan oil is today below the c
Read more Previous

New Zealand announces nz$12.1 bln economic package in response to COVID-19

NEW ZEALAND ANNOUNCES NZ$12.1 BLN ECONOMIC PACKAGE IN RESPONSE TO COVID-19. Key notes 16-Mar-2020 19:00:00 - ECONOMIC PACKAGE ACCOUNTS FOR 4% OF GDP,
Read more Next
Start livechat