04.01 - Gold prices ease from the multi-day high
- by George Solotarov
Gold prices trim early Asian gains while receding to $1,921.67, up 1.21% intraday, ahead of Monday’s European session. The yellow metal jumped to its highest since November 09 during early trading hours before stepping back from $1,925.38. While overbought RSI and the latest pullback in the US dollar index (DXY) could be traced as the triggers for the recent weakness in gold prices, the commodity’s ability to stay beyond a symmetrical triangle from December 16 keeps buyers hopeful.
However, odds of witnessing a pullback to the $1,900 and the resistance line of the stated triangle near $1,893, followed by the triangle support line, at $1,881 now, can’t be ruled out. Alternatively, an ascending trend line from December 08, at $1,933 now, can offer an intermediate halt during the run-up to November highs near $1,966. Overall, the risks are changing the course of the early-Asian move amid the coronavirus (COVID-19) headlines.