Gold Etches Closer to Its Highest Point Since 2012

Gold (XAU/USD) traded with a positive undertone through the early European session and was last spotted trading near multi-year highs at the $1,778 level.

Although recent reports have given more credence to the possibility of a sharp V-shaped global economy recovery, investors remain apprehensive considering the rising number of Coronavirus cases globally. This coupled with a sharp decline in the global equity markets has provided further support to the yellow metal.

The ‘anti-risk flow’ was bolstered by an intraday decline in the US Treasury bond yields, which consequently benefited the non-yielding commodity. However, fresh overbought conditions slowed down the bullish momentum amid a subtle pickup in the US dollar demand, which undermines demand for gold.

That said, rising open interest and positive price action will solidify the continuation of the uptrend in the very near-term. Any corrective slide at this point will be considered as a buying opportunity given that there is no relevant market-moving US economic release today.

Gold (XAU) Value Forecast — June 24

XAU/USD Major Bias: Bullish

Supply Levels: $1,785, $1,790, and $1,800

Demand Levels: $1,765, $1,753, and $1,745

After consolidating for a little while in our pivot range, gold snapped the $1,770 level and is now headed strongly towards the long-awaited $1,800 psychological level. A slowdown may be seen in the near term considering that we are now in overbought territory. A drawback from this level, however, will only attract more buyers making a sustained decline very unlikely.

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