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Gold Slips Below Triple Top $1,815 - Time to Benefit Choppy Sessions! 

EagleFX

The safe-haven-metal failed to maintain its overnight gains and were marginally down near $1,806. Though, the gold prices stuck in a trading range of $1,807 to $1,811 due to mixed clues. However, the bullion's modest losses could be attributed to the risk-on market sentiment backed by the increasing odds of the coronavirus (COVID-19) vaccine. In the meantime, the traders ignored the noise surrounding the record surge in the U.S. coronavirus (COVID-19) cases and the Sino-American tension.

On the other hand, the broad-based U.S. dollar weakness triggered by the upbeat market mood limited any additional losses in the yellow-metal. At the moment, the yellow metal prices are currently trading at 1,806.80 and consolidating in the range between 1,806.26 and 1,811.44.

Despite the continued rise in the number of coronavirus cases globally and the on-going Sino-American conflict, the market traders cheered the optimism concerning the COVID-19 vaccine, which was triggered after the upbeat signals form Moderna and U.S. President Donald Trump's comment concerning the COVID-19 vaccine. As per the keywords, "Moderna's potential vaccine to prevent Covid-19 produced a "robust" immune response in all 45 patients in its early-stage human trials, providing more promising data that the vaccine may give some protection against the coronavirus." However, virus vaccine news eventually restricted safe-haven demand.

At the coronavirus front, the COVID-19 situation continued to worsen globally. As in result, California Governor Gavin Newsom has recently ordered the re-imposition of social-distancing measures across the largest U.S. state. Whereas, the most populous state's two largest school districts, Los Angeles and San Diego, also decided to teach only online when classes resume in August. Apart from the U.S., the Japanese Economy Minister Yasutoshi Nishimura said that his government could declare an emergency if infections grew further. However, the ever-increasing coronavirus fears failed to put any strong bid under the yellow-metal at least for now.

Apart from the virus woes, the full-fledged war between the world's top two economies got an additional boost and continued to sour as the U.S. imposed sanctions on diplomats from Beijing. At the same time, he signed an executive order ending preferential treatment for Hong Kong as a punishment against China for what he called its "oppressive" actions against Hong Kong people.

The Republican leader recently criticized China for Hong Kong security law and held it responsible for the pandemic (COVID-19) during his on-going Rose Garden press conference. In the meantime, Trump said he had convinced many countries not to use Huawei, and he also added that "We can impose further massive tariffs on China if we desire." These statements from the U.S. could fuel tensions between China & the U.S. disputes.

However, the increasing numbers of the coronavirus and further tension between the U.S. and China challenged the latest risk-on market sentiment. However, the losses in the U.S. dollar could be connected to the positive U.S. data and vaccine hopes, which pushed the U.S. stock futures higher.

In the absence of the major data/events during the Asian session, the Bank of Japan's (BOJ) monetary policy meeting, which is scheduled to happen at 0.3:00 GMT, will be closely observed. The traders will keep their sights on the USD price dynamics and coronavirus headlines, which could play a key role in influencing the intraday momentum. Whereas, the updates concerning China-US relations could not lose their importance.


Daily Support and Resistance

S1 1767.47

S2 1784.27

S3 1791.31

Pivot Point 1801.07

R1 1808.11

R2 1817.87

R3 1834.67

On the technical side, the yellow metal XAU/USD is trading at 1,806 level after placing and testing a triple top resistance level of 1,816 level. The most recent two-hourly candle is bearish engulfing, suggesting the odds of selling bias in the market. The leading indicator like RSI is just crossing below 50, demonstrating the odds of selling in the precious metal gold. The precious metal gold is currently holding over 50 EMA, supporting the pair around 1,806 level. Below this, gold may find next support around 1,798 level along with resistance around 1,815 level. Let's consider staying bullish over 1,800 level today. Good luck!

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