The safe-haven-metal prices succeeded in extending its previous recovery moves and hit the multi-year high above $1,775 level, mainly due to the downbeat trading sentiment triggered by the intensified coronavirus fears. Heightened fears sent investors into the safe-haven assets and contributed to the gold gains while the reason for the sluggish risk-tone could be attributed to the ongoing trade war between the U.S. and the rest of the global economies like the European Union (E.U.), the U.K., China, and Canada.
The U.S. dollar weakness further bolstered the yellow-metal gains. Currently, the yellow metal is trading at 1,769.49 and consolidating in the range between 1,767.86 and 1,775.66. The XAU/USD prices remained in the region of October 2012 high and kept struggling toward the $1,800 an ounce.
The demand for safe-haven assets also remains high in the wake of the second wave of coronavirus, especially in states like Texas, Florida, and Arizona. The global COVID-19 deaths toll crossed half a million while the figures from the current U.S. epicenter also fueled worries. As per the latest report, Texas registered cases of above 5,000 readings for consecutive seven days by the weekend, whereas California's State Health Department said claims rose by 4,810 to 211,243 total as of June 27. Consequently, U.S. President Donald Trump could face some issues on Presidential election campaigns as Mike Pence failed to visit Arizona and Florida.
The investors focus shifts to the series of high impact events from the U.S. On the news front; it's going to be a busy day in the wake of U.S. Chicago PMI, C.B. Consumer Confidence, and Fed Chair Powell Testifies. The European session may exhibit muted sessions, but the New York session is likely to bring sharp movements in the market, and we can expect breakouts.
Daily Support and Resistance
S1 1710.82
S2 1737.61
S3 1754.39
Pivot Point 1764.39
R1 1781.17
R2 1791.18
R3 1817.96
The technical side of the market continues to follow the same as gold is trading at 1,769 level, holding above a subsequent support level of 1,767.
Over this level, the yellow metal gold can drive the XAU/USD prices towards 1,773 and 1,778. Whereas, the support extends to stay at 1,767 and 1,758, let's wait for a breach ere taking any trade in gold. Good luck