Gold price continues to improve its technical picture today as it recovers all of Friday’s losses. The precious metal is trying to stabilize after the sharp correction the previous week. Investors dumped gold and other safe-haven assets the last week as the sentiment improved, and S&P 500 and Nasdaq hit all-time highs.
The news that the FDA approved the use of blood plasma from recovered coronavirus patients as a coronavirus treatment boosted the equities today but gold traders for now ignored the news.
Weak economic data continues to disappoint and offer some support to the gold price. The United States Chicago Fed National Activity Index registered in at 1.18 well below the expectations of 2.73.
According to a survey contacted by the National Association for Business Economics, there’s a 25% chance the U.S. economy could hit a double-dip recession. The 66% of NABE members believe the U.S. economy has not yet come out of recession.
Gold Technical Analysis
Gold price is 0.20% higher at 1,941, as but off the daily highs as the precious metal attempts to recover the recent losses. Volatility is high as traders try to digest the current levels after the sharp correction.
The daily top at 1,961 would provide the first resistance—more pressure expected at 1,998 the high from August 19. Above 1,998, the next resistance area is at 2,016 the high from August 19.
On the other hand, immediate support for gold stands at 1,929 today’s low. More bids would emerge at 1,909 the low from Friday’s trading session. If the bears break that level, then the next support is at 1,866 the 50-day moving average.