Gold refreshes two-week high to rise further towards $1,650
- Gold registers four-day winning streak.
- Markets await more clues for the US coronavirus aid package while catching a breath after the latest risk-on.
- US data can offer intermediate moves while COVID-19 headlines will keep the driver’s seat.
While extending its recent run-up, Gold prices remain 0.5% positive while flashing $1,637 as a quote during the Asian session on Wednesday. The recovery in the market’s risk-tone, coupled with the US dollar weakness, seems to have favored the bullion off-late. However, the precious-metal traders await further details of the much-awaited US COVID-19 Bill for fresh impulse.
In addition to the increased odds of the estimated $2 trillion package to combat the deadly virus, an initial pattern of depleting coronavirus (COVID-19) cases from Italy also helps the market to remain positive. Also supporting the shift in the risk-tone could be the global efforts, led by the Fed, to ward off the negative implications of the disease.
As per the latest developments, US President Donald Trump and the White House Economic Adviser Larry Kudlow suggested the nearness to the bill. However, nothing concrete crossed the wires afterward as the Senators are to vote on the package on Wednesday.
It should also be noted that the US is readying to allow a 90-day deferral to its trade partners over the tariffs and hence offer additional support to the risk-on.
Even so, the US stock futures fail to extend the previous day’s upbeat performance by Wall Street whereas the US 10-year treasury yields mark three basis points (bps) of gains to 0.85% by the press time.
Moving on, the US Durable Goods Orders for January, expected -0.8% versus -0.2% prior, can offer an additional catalyst other than the virus and the US package news to watch.
Technical Analysis
Unless providing a daily close beyond $1,650, near to the March 12 top, buyers remain skeptical of the strong upside.