Gold Price Analysis: Gold stalls due to the positive risk tone and fails to capitalise on the weaker US dollar
Risk sentiment is positive at the start of the week as all of major Asian, EU and American bourses trade higher. Gold has fallen today off the back of the aforementioned risk tone and failed to capitalise on the weakness in the greenback (USD). In the FX world, the US dollar underperformed especially against the EM currencies. USD/ZAR is down almost 1%, USD/INR and USD/RUB are both negative on the session too.
It seems that the fact that more countries have plans to open their respective economies is one of the main factors in the positive mood. Although, New York mayor Cuomo has said the state will not be ready to even look at opening some parts of the area till the middle of May. Italy which is been the second most affected country has announced their plans to reopen more of their economy too.
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Gold Price Analysis: XAU/USD trading off 2020 highs, holding above $1700/oz
XAU/USD is consolidating the last bullish leg while trading above the main SMAs on the four-hour chart. Although the market didn’t reach the last swing high near 1748, XAU/USD maintains a strong bullish momentum as bulls are still eyeing a break above the 1740.00 level on a daily closing basis which could open the doors toward the 1740 and 1780/1800 resistance zone. On the flip side, support is expected to hold near 1700/1690 price level in the medium-term. Further down lies the 1660 level.
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