Prices of the ounce troy of the precious metal are fading Monday’s uptick and are resuming the downside in sub-$1,800 levels on turnaround Tuesday.
Gold looks to risk trends, pandemic
The negative price action in the yellow metal comes despite the softer tone in the greenback and amidst the almost-constant bias among investors towards the riskier assets.
Further out, Gold now appears somewhat decoupled from the recent move up in tandem with the riskier assets, which was mainly sustained by the declining opportunity costs of holding the metal in a context dominated by negative real interest rates.
However, the commodity is expected to remain vigilant on bouts of risk aversion exclusively in response to the advance of the pandemic and its impact on the economy as well as geopolitical/trade jitters from the US-China scenario.
Later in the session, investors will look to the release of US inflation figures measured by the CPI for the month of June.
Gold key levels
As of writing Gold is losing 0.49% at $1,793.61 and faces the next support at $1,756.00 (monthly low Jul.6) seconded by $1,737.01 (55-day SMA) and then $1,670.88 (monthly low Jun.5). On the other hand, a breakout of $1,818.14 (2020 high Jul.8) would expose $1,912.29 (monthly high Aug.2011) and then $1,920.94 (monthly high Sep.2011).
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