Gold continues to drop in cycles as market sentiment falters and recovers amidst geopolitical turmoil. The possible trade war lead-up is likely to cool off following this week’s round of tariff threats. What else does this 5 April Gold Price Fundamental Outlook discuss?
5 April, GKFX – Gold extended overnight sharp retracement slide from over 1-week tops and continued losing ground through the Asian session on Thursday.
A fresh wave of global risk-on mood, as depicted by a strong overnight recovery in the US equity markets and buoyant sentiment across Asian bourses, was seen as one of the key factors weighing heavily on the precious metal’s safe-haven appeal.
Easing US-China trade war fears dampen safe-haven demand
Adding to this, a modest US Dollar rebound, supported by easing US-China trade war fears, exerted some additional downward pressure on dollar-denominated commodities – like gold. Further collaborating to the downside was a goodish pickup in the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal.
The commodity is now inching closer to the lower end of its weekly trading range and a follow-through weakness, amid fading safe-haven demand, now looks a distinct possibility. Later during the early NA session, the usual initial weekly jobless claims data from the US would be looked upon for some short-term trading opportunities.
5 April Gold Price Fundamental Outlook
As FXStreet’s own Falvio Tosti noted earlier,
“key support is seen at $1,321 last week’s low. Bears will need to break the $1,330 level with the 50 and 100-period simple moving average. Unless the bulls can retake the $1,400 level the short-term momentum is currently seen as bearish.
Resistance is seen at the $1,340 psychological level and at $1,348.40 swing high, while support is seen at $1,328.60 swing low and confluence zone, followed by $1,321.06 swing low.”
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