Gold is near unchanged levels in trading today, but sits below both key hourly moving averages
The pair is resting under both its key hourly moving averages today, as the near-term bias remains more bearish for now. However, buyers are still clinging on to support around the 50.0 retracement level @ $1,633.23 for the time being.
After testing the $1,700 level to start the week, it has been a continued struggle for gold to stay afloat as the market is still in a ‘sell everything’ mood.
US stocks have been battered once again yesterday and gold fell off after testing its 100-hour MA (red line) late into the trading day.
With central banks everywhere easing policy, gold seems like a sure-fire bet to soar but that hasn’t really been the case after the move higher last week.
As the market continues to reel in panic and fear, the term ‘cash is king’ often comes to mind. And that is likely what is happening with gold as well, with funds and big players liquidating assets to meet margin calls and what not during a time like this.
But if you can brave past the volatility and look at the big picture, gold is still in a great spot to rally once the equities selloff becomes less panicky and more measured.
Global rates are slowly turning lower and real yields are becoming even more negative, with the risk situation across the globe still uncertain amid the virus outbreak.
For now, the technical picture isn’t really hinting at a major turnaround in gold sentiment over the past three days but keep an eye on the near-term levels as that could provide the first few hints of gold returning back to favour moving forward.