· Gold fell on Thursday on hopes of a swift recovery in growth following easing of lockdowns and possibility of a coronavirus vaccine, but bleak data from major economies limited losses.
Spot gold slid 0.7% to $1,737.35 per ounce by 0625 GMT. U.S. gold futures slipped 0.8% to $1,738.80.
· Global equities surged overnight, though gains during Asian hours were limited by lingering caution about the long-term impact of the coronavirus outbreak.
· "There is still some optimism and risk-on sentiment about the possibility of a vaccine and talks of lockdown easing and growth slowly picking up," said National Australia Bank economist John Sharma.
"But it not a huge thing and if it was major, we would see gold going below $1,700."
· Gold rallied to its highest since October 2012 on Monday, driven by economic damage concerns, U.S.-China tensions and massive monetary and fiscal stimulus.
· U.S. Federal Reserve policymakers acknowledged the possibility of further support measures if the economic downturn persists, the minutes from the latest policy meeting showed.
· The latest round of dismal economic indicators have underscored the extent of damage inflicted by the virus, with data showing Britain's inflation slumped to its lowest since 2016.
· The initial U.S. jobless claims data due later in the day will be the next focus for further clues about the health of the world's top economy.
· Palladium dropped 2.2% to $2,055.14 an ounce, having hit a one-month high on Wednesday. Platinum fell 1.1% to $841.37.
· ANZ analysts expect weaker auto sales to be the key downside risk for the platinum group metals this year and see demand contracting for both palladium and platinum.
"Mine supply disruptions could protect the downside; still we see prices staying volatile amid the ongoing macroeconomic challenges," they said.
· Silver declined 2.2% to $17.12 an ounce.
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· Gold Price Takes Aim at 2012 Peak Near $1,800 as Climb Continues
Gold has enjoyed a boost in recent weeks as the initial forces that sparked a selloff and immense volatility in March have subsided. At the same time, the longer term implications of low interest rates and massive stimulus programs has likely helped to propel the metal higher. As a result, XAU/USD has passed its prior May high around $1,747 and looks to be taking aim at subsequent resistance around the metal’s September 2012 apex near $1,800.
To be sure, other price levels may influence gold on an intraday basis, but for the time being it seems $1,800 is the next major hurdle for the commodity in its remarkable climb higher. Should price break through the level, the 2011 swing high around $1,920 may be next on the list. Either way, the string of consecutively higher-highs is an encouraging technical sign for the yellow metal going forward.
In the shorter term, lower retracements will likely encounter nearby support around $1,714 where a longstanding Fibonacci level intersects an ascending trendline projection from January. Both levels have shown their ability to influence price in the past, so the area is liable to do so again.
Deeper losses could see the metal probe $1,650 and $1,587 if bearishness becomes particularly extreme. That being said, as long as gold can stave off losses beneath the March low near $1,450, it is my opinion the metal remains an tilted to the upside.
· Gold Price Analysis: Again rejected from $1,752/54 resistance area
Gold prices register another pullback from the key $1,752/54 horizontal resistance while taking rounds to $1,747.50 during Thursday’s Asian session.
That said, sellers are likely targeting $1,740 as immediate support during the further declines. However, the weekly low and 200-HMA around $1,726/25.50 might challenge additional weaknesses.
Should the precious metal drop below $1,725.50, May 08 top near $1,723.70 could probe the bears before offering them $1,714 rest-point comprising 61.8% Fibonacci retracement of May 06-18 upside.
Alternatively, a clear break of $1,754 will have to successfully cross the recent high of $1,765.38 to challenge the year 2012 top surrounding $1,796.
· Gold Price Analysis: Topping $1,748 is key to resuming the rally – Confluence Detector
Gold has been consolidating after a surge to the upside, trading at around $1,740. Can it challenge the 7.5-year highs once again?
The Technical Confluences Indicator is showing that fierce resistance awaits at around $1,748, which is a dense cluster of technical lines including the Bollinger Band 1h-Middle, the Simple Moving Average 5-4h, the SMA 100-15m, and the previous monthly high.
Softer resistance is at $1,751, which is the meeting point of the Fibonacci 23.6% one-day and the previous weekly high.
Support is at $1,737, which is the confluence of the Fibonacci 23.6% one-week and the Pivot Point one-day Support 2.
Further down, strong support awaits at $1,728, which is the convergence of the SMA 50-4h and the Fibonacci 38.2% one-week.
· Governments may ban private gold ownership - Hedge fund tycoon Crispin Odey
A Bloomberg report quotes hedge fund tycoon Crispin Odey as saying that governments may ban private ownership of gold if they lose control of inflation.
Governments and central banks across the globe have launched unprecedented fiscal and monetary lifelines to help their respective economies contain the fallout from the coronavirus outbreak. Many economists are of the opinion that the trillions of dollars of liquidity that is being injected into the global economy would lead to a sharp rise in inflation.
Reference: Reuters, FX Street, Daily FX,Making Fee
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