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Gold: Registers three-day losing streak, towards $1,450, despite fresh risk-off

  • Gold prices remain on the back foot amid broad US dollar strength.
  • The fresh coronavirus headlines from the UK and US renew risk aversion but the shift to safe-haven flows help the greenback.
  • Combat against the virus can offer fresh impulse, the economic calendar will provide intermediate bounces.

With the fresh risk-off and news of further efforts by the Trump administration to combat against the coronavirus (COVID-19) helping the US dollar, Gold prices remain under pressure around $1,467, with a low of $1,455, amid the Asian session on Friday.

The US Senate GOP announced its third proposal and is close to the final bill, likely on Monday, to ward off the negative economic implications of the deadly virus. Further, New York Mayor anticipates running out of medical supplies and challenge the risk-tone.

Elsewhere, the UK Brexit Chief David Frost is anticipated to have been infected by the disease whereas British Chancellor Rishi Sunak is likely to take a bold move to counter the pandemic.

Also signaling the global rush to hoard the greenback could be the Australian Banking Association’s upcoming relief plan as well as US President Trump’s cancellation of personal visits to the G7 meetings in April and May.

While portraying the risk sentiment, the US stock futures mark more than 1.5% losses by the press time.

Investors will be interested in the news concerning the cure following earlier announcements that Gilead's Remdesivir medicine is being tested to cure the COVID-19. Until then, the global fight against the epidemic will be the key catalyst.

Technical Analysis

Unless successfully trading beyond 200-day SMA, currently at $1,503, the yellow metal can’t rule out possibilities of further declines to November 2019 low near $1,445.

 

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