- Gold drops to intraday low during the third negative daily performance.
- Hopes of faster vaccinations confront trade, geopolitical issues, S&P 500 Futures print mild gains.
- Light calendar, off in Australia, New Zealand can test short-term moves.
Gold fails to extend late Friday’s corrective pullback while refreshing intraday low to $1,774.70 during the early Asian session trading on Monday. In doing so, the yellow metal drops for the third consecutive day after stepping back from the highest levels seem after February 25. It should, however, be noted that the bears don’t have a free hand as mixed catalysts test the immediate momentum.
Bulls and bears jostle over multiple issues…
Although S&P 500 Futures begin the week on a firmer footing, gold buyers aren’t convinced for a return and they have reasons. Among them, the coronavirus (COVID-19) woes in Asia and the Western tussle with China, not to forget Brexit woes, are the key issues. Also challenging the mood is the defeat of Japan’s ruling party in three by-elections.
On the positive side, the US regulators approved the restart of Johnson & Johnson jabbing after blood clotting issues resulted in a 10-day ban of the key covid vaccine’s usage. Further, the US, Russia and Saudi Arabia stay ready to send important medical help to India amid the pandemic in New Delhi. Additionally, the European Union (EU) is up for allowing the US tourists, those who vaccinated, from this summer, which in turn portrays the bloc’s optimism amid rising inoculation in the West.
It’s worth mentioning that US President Joe Biden is gaining good support for its infrastructure spending plan, as per the latest NBC poll. However, chatters over his tax hike plan trouble the market bulls.
Looking forward, a light calendar in Asia-Pacific and ANZAC Day holiday in Australia and New Zealand will offer a dull day ahead. Though, the aforementioned risk catalysts could entertain the bulls ahead of a busy week starting with US Durable Good Orders, also comprising the Fed meeting.
Technical analysis
Unless bouncing back beyond $1,780, comprising an ascending trend line from March 31, gold remains directed towards the early April top surrounding $1,758.
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