Gold Price Action Remains Bullish Despite Steady Equities Market Recovery

Gold Price Action Remains Bullish Despite Steady Equities Market Recovery

Gold (XAU/USD) continues fairly bullish into the end of the trading week on Friday following recent market sentiment development. Although the price witnessed a slight retrace in the early hours of the Asian session today, a full reversal seems unlikely considering the absence of any major catalyst.

Meanwhile, China has made progress with its clinical trials for a COVID-19 drug following positive results on animals. This has caused traders to re-evaluate their stance on their fears of a second wave of the virus mainly in the US and Asia. The Australian Finance Minister, Mathias Cormann, has warned that a second wave of the virus could cost the Australian economy about $80 billion over the next two years.

On the other hand, the US and Japan have announced that they will be keeping visa restrictions in place despite the easing of lockdown restrictions. Also, the Fed’s funds futures have renewed hopes of negative interest rates by the apex bank. That said, the US 10-year Treasury yields, S&P Futures, Japan Nikkei, and stocks in China have recovered fairly in recent trading sessions.

Meanwhile, the US Michigan Consumer Sentiment Index for May will likely be the key determinant for today’s trading bias.

XAUUSD – Daily Chart

Gold (XAU) Value Forecast — June 12

XAU/USD Major Bias: Bullish

Supply Levels: $1,740, $1,753, and $1,763

Demand Levels: $1,722, $1,710, and $1,700

Gold has entered into a consolidation range between $1,722 and $1,745 as further gains are being strongly resisted by the $1,745 line. Bulls will have to break this resistance level to continue the uptrend towards higher resistance levels and ultimately the $1,800 psychological level.

Also, the possibility of gold falling below the $1,700 level is still in the picture. This bias will be completely overshadowed only when the gold defeats the $1,753 resistance and above.

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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