13.04 - GOLD: prices recover the early-day declines amid fresh risk aversion
- by George Solotarov
Despite marking no major gains on a day, Gold prices extend the latest recovery moves from $1,680 while taking rounds to $1,684 by the press time of early Monday. Although receding risks of coronavirus from the earlier hotspots seem to have weighed on the bullion, the challenges to the US are likely favoring the market’s rush to risk-safety. Even so, the Easter Monday holiday in major countries seems to limit the safe-havens moves.
To portray the risk aversion, the US stock futures register more than 1.0% losses by the press time whereas Japan’s NIKKEI also declines 1.50% to 19,070 by the time of writing. Even if a lack of major data/events could keep gold trading choppy, risk aversion could keep the buyers hopeful. It should also be noted that the US dollar has recently witnessed a pullback and could challenge the buyers.
An ascending trend line from March 20, currently near $1,680, could keep short-term declines limited. Meanwhile, buyers await a clear break above $1,700 to question the previous month high surrounding $1,703.