Gold Price Analysis: Resistance-turned-support trendline keeps $1,700 on the cards
Gold recovers most of the early-day losses while trading around $1,658, -0.10%, while heading into the European session on Tuesday. Even so, it needs to cross Monday’s high for the fresh rise. If the yellow metal manages to ignore overbought RSI conditions beyond $1,690, the high of 2013 near $1696 as well as $1,700 will be on the bulls’ radar.
It should, however, be noted that the commodity’s rise past-$1,700 can take aim at highs marked during November and October 2012, respectively near $1,751 and $1,794.
Gold prices consolidate gains to sub-$1,650 area amid risk reset
Gold prices decline to $1,649.50, down 0.62%, amid the initial hours of the Asian session on Tuesday. While the risk of spreading coronavirus outside China propelled the bullion to a fresh seven-year high on Monday, the recently mixed headlines seem to trigger the pullback amid risk reset.
Among the key catalysts, China’s lowering of emergency alerts in various provinces and the recent recovery in coronavirus (COVID-19) numbers played the key role. Also challenging the risk-on was the World Health Organization’s (WHO) tweet mentioning the epidemic to have peaked between late-January and early-February. Further to support the sellers were the US President Donald Trump and the Federal Reserve Cleveland President Loretta Mester who downsized the risks emanating from the Chinese virus.
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