- Gold prices hold onto recovery gains near the eight-day top.
- Risk-tone keeps dwindling amid coronavirus fears, political headlines and broadly strong US dollar.
- US data, headlines from China will be the keys to watch.
Gold remains firm around $1,578 during Friday’s Asian session. The extension of an increase in coronavirus cases seems to have favored the bullion’s latest run-up after cases shot the previous day on the change of diagnosing method.
As per the latest release from China’s Health Commission, the epicenter Hubei province reports 4,823 new cases on the second day of using the new method. The details suggest that the number of people in serious and critical condition rose to 9,638 from the prior readouts of 7,084.
While realizing the seriousness of the issue, Chinese officials are active enough to infuse financial markets while also not refraining to sack two key officials during the latest Politburo meeting. On Thursday, China’s President Xi Jinping suggested that the government’s efforts were beginning to have positive effects.
Elsewhere, the US Dollar stays firm around four-month high as upbeat data at home, as well as positive comments from the Fed officials, please the greenback buyers. It should be noted that the USD is noted to have a negative correlation with commodities.
On the political front, a rocket strike on the US military base in Iraq as well as the US Senate’s taming of President Donald Trump’s powers to go on a war with Iran offers a little direction to the precious metal.
That said, the US 10-year treasury yields decline two basis points to 1.60% whereas S&P 500 Futures trim 0.12% to 3,373 by the press time.
Moving on, investors will keep eyes on headlines from China and on the global geopolitics while the US Retail Sales and Michigan Consumer Sentiment Index could please the momentum traders afterward.
Technical Analysis
Considering the highs marked since February 04, buyers need to tackle $1,580 immediate upside barrier to aim for monthly top surrounding $1,594 and $1,600 round-figure. On the downside, 21-day SMA around $1,569 and the latest low near $1,562 should be watched during the pullback.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
![AUD/USD hovers around 0.6670, trades on sentiment](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/macro-of-aussie-20-note-8668638_XtraSmall.jpg)
AUD/USD hovers around 0.6670, trades on sentiment
The Australian Dollar trimmed losses against its American rival, as US indexes trimmed inflation-inspired losses. Australian Consumer Inflation Expectations stand out in the Asian session.
![EUR/USD remains depressed near 1.1020](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-euro-and-dollar-banknotes-17371247_XtraSmall.jpg)
EUR/USD remains depressed near 1.1020
The EUR/USD pair flirted with the 1.1000 level after US inflation data cooled hopes for an aggressive Federal Reserve rate cut. The European Central Bank will announce its decision on monetary policy on Thursday.
![Gold reconquered $2,510, aims to retest record highs](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/safe-investment-gm147322399-17568598_XtraSmall.jpg)
Gold reconquered $2,510, aims to retest record highs
Gold touches the top of its range and then falls back down to $2,500 after the release of US inflation data on Wednesday. The benchmark 10-year US Treasury bond yield rebounds on stronger-than-forecast monthly core CPI print and drags XAU/USD lower.
![XRP corrects 3% after Ripple CTO says Ledger does not have smart contract functionality](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/ripple_XtraSmall.jpg)
XRP corrects 3% after Ripple CTO says Ledger does not have smart contract functionality
Ripple (XRP) has plans to introduce smart contract functionality to its native blockchain, the XRP Ledger. However, as of September 11 the firm has not announced a date for its launch on the mainnet.
![Five Fundamentals for the week: Jittery markets fear the ECB, US inflation and more](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Prices/CPI/consumer-price-index-gm500080630-80587217_XtraSmall.jpg)
Five Fundamentals for the week: Jittery markets fear the ECB, US inflation and more Premium
Is there still a chance? Investors hope for a 50-bps rate cut from the Fed but also fear a global recession is underway. The world's three largest economies, the US, China, and the eurozone, are set to rock global markets.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.