MCX Gold Price Trend Sidways – Gold yesterday settled down by 0.2% at 48134 as stronger dollar weighed on prices and investors remained cautious due to a surge in the number of coronavirus cases in the U.S.
However, downside seen limited as prices got some support earlier in the day after upbeat data in Europe boosted the euro and helped stoke hopes for a global economic recovery, underpinning appetite for riskier currencies.
Prices also got support as the concerns about the U.S.-China trade deal resurfaced following comments from White House trade adviser Peter Navarro about China’s failure to warn the U.S. about the coronavirus outbreak.
Fresh momentum in Gold prices seen as investors piled into physically-backed gold ETFs to secure hard assets amid expectations of continued global ultra-low or negative interest rates and currency debasement.
The WGC reported that a massive 27.3 tonnes inflow into gold-backed exchange-traded funds (ETFs). The European Union is prepared to bar U.S. travellers because of the surge of cases in the country, putting it in the same category as Brazil and Russia.
U.S. Treasury Secretary Steven Mnuchin said the next stimulus bill will be focused on getting people back to work quickly and that he would consider a further delay of the tax filing deadline. The German economy should return to a growth path in the third quarter after an expected double-digit contraction between April and June.
SPOT GOLD TECHNICAL ANALYSIS
Gold prices broke near-term support (on the 4-hour chart) after forming a Bearish Engulfing candlestick pattern. Sellers may now move to challenge the $1745—$1744 level, with a break below that doubling as a breach of trend line support from early June.
The congestion region top at $1722 – now recast as support – follows thereafter. Alternatively, a push back above $1767 eyes the swing top at $1778 next level.
