Gold Price News and Forecast: XAU/USD declines by $8 in Asia, focus on narrowing price range

Gold declines by $8 in Asia, focus on narrowing price range

Gold is flashing red at press time amid mixed action in the equity markets and lackluster US dollar. The yellow metal is currently trading near $1,700, representing a 0.27% drop on the day, having hit a high of $1,708 earlier today. While the futures on the S&P 500 are up 0.10%, stocks in Australia are down 0.6% and those in China are trading flat. The dollar index, which tracks the value of the greenback, is flatlined near 99.80, having risen by nearly 150 pips in the last two days. 

The macro-environment remains anti-risk with investors worried about the increasing tensions between the US and China about the coronavirus outbreak translating into a new trade war. Additionally, investors seem concerned about a potential second wave of COVID-19 as nations seek to re-open their economies and get people back to work. 

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Markets pricing in a viral all clear

Gold continues to experience impressive $30 ranges intra-day, with equally unimpressive almost unchanged close concluding the day. Such was the case overnight, with gold trading between $1680.00 and $1710.00 an ounce, only to close unchanged from the previous day at $1700.00 an ounce.

The price action suggests that gold remains the domain of intra-day momentum traders and not longer-term fundamental ones. The latter appears to be content residing on the side-lines until either $1650.00 or $1750.00 an ounce, are convincingly broken.

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Posted in FX