- Gold (XAU/USD) prices climb 2.7% in five days
- COVID-19 has resulted in a supply squeeze for gold coins
- Fed and ECB updates this week could trigger price
In the last five consecutive sessions, gold prices have been on the up after they climbed 2.7% pushing XAU/USD to its highest since 2012. On Monday the prices dropped 0.30 to take bullion to $1,723 and the prices remained under pressure over the weekend due to lack of any major triggers.
Gold price remains flat over the weekend due to lack of a catalyst
Over the weekend the US canceled daily COVID-19 taskforce briefings following criticism on President Trump’s suggestion to use disinfectants as a treatment for the virus. Also, the plans to open the US economy are still hanging on the balance and thus there was no catalyst for gold price movements over the weekend.
It seems investors can’t get enough of the yellow metal during this COVID-19 crisis. The surge has been aggravated by the COVID-19 restrictions that have resulted in a supply squeeze of available bars and coins. Similarly, the appeal of gold as a safe-haven has lured distraught investors by the global economic and market turmoil.
Since March 23 when the Fed announced that it will buy Treasury bond gold prices have climbed 15%. The current bulge in Federal Reserve asset purchases will push the price of gold higher. However, there is a possibility of gold facing resistance in the near-term ahead of the monetary policy updates from FOMC.
This will be a major catalyst in gold price action if the update will prompt traders to reconsider their outlook for bullion. Also, the ECB is to provide its monetary update this week and this could help XAU/USD continue with its bullish trend.
Time : 28-04-2020
Pivot : 1,705.57
Technical View : Long above 1,710.85
Target : 1,716.11
Technical View : Short below 1700.56
Target : 1695.55
Comments : Bullish sentiment on gold price outlook as recession looms
Last Price : 1,722.82