Gold prices lack fresh impetus around $1670 amid broad risk-off
- Gold posts small losses, consolidating the corrective slide.
- XAU bulls lack impetus amid profit-taking mood.
- Upside looks compelling amid coronavirus-led global economic risks.
Despite the massive sell-off on Wall Street amid coronavirus and oil shock driven risk-aversion, Gold prices (XAU/USD) remain unperturbed and report marginal losses on the day, now trading around $1670 levels.
The yellow metal renewed a seven-year at 1703.27 in early Asia this Monday, in response to the sharp decline seen in global equities after the rise in both the new coronavirus cases as well as the death toll across the globe sent investors scurrying up for safe-havens.
However, the prices failed to hold at higher levels and corrected sharply thereafter, as investors locked-in gains after the extensive rally. Consequently, gold prices fell as low as $1657.57 but later on attempted a bounce back towards 1685 region, as the oil-price crash, in the wake of Saudi Arabia’s price war, kept the investors unnerved.
Since then, the precious metal wavers in a $20 range, looking for a fresh direction, with the risks seemingly titled to the upside, as gold still remains the safest alternative in times of market panic and uncertainty.
Further, expectations of a 75bps March Fed rate cut and 50bps ECB rate cut also keep the buying interest alive in the non-yielding, gold. The US Treasury yields attempt a recovery but remain heavy amid a rush to safety in the US bonds.
Gold technical levels to watch