Gold Remains Under Pressure as Global Economies Begin Re-Opening

Gold Remains Under Pressure as Global Economies Begin Re-Opening

The price of Gold (XAU/USD) fell in the Monday trading session as the economic life in Europe seems to be getting friendlier for risky assets, thereby diminishing demand for safe-haven assets. At 13:45 GMT, the gold spot dropped by about 0.6% reaching a low of $1,721/oz.

With the European equity market picking up buoyancy and the budding US-China tensions causing the dollar to be in demand, gold has remained under pressure for most of today.

General Manager of ABC Bullion in Sydney, Nick Frappell, said in his weekly preview that gold might drop to the $1712-10 support levels in the short term. However, he strongly believes that if this happens, it could pave the way for a very powerful bullish breakout.

Also, Japan has announced that it is ready to remove the state of emergency restriction in five regions in the country ahead of schedule. This decision is indicative that the coronavirus pandemic is slowing down in several parts of the world, giving riskier assets more demand.

XAUUSD – Daily Chart

Gold (XAU) Value Forecast — May 25

XAU/USD Major Bias: Bullish

Supply Levels: $1,745, $1,763, and $1,797

Demand Levels: $1,722, $1,717, and $1,700

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

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
Share with other traders!