Gold price consolidates close to nine-year highs as investors waiting for a catalyst that will drive the price. Risk-on sentiment drove the stock markets close to monthly highs yesterday on news of positive results from the initial trial stage of the Moderna’s coronavirus vaccine but had little impact on the gold price as the new coronavirus infections continue to rise in some U.S. states and Tokyo. Many states have cancelled the reopening process with a negative impact on economic recovery.
Gold might get a boost from the rising tensions between China and USA in the South China Sea and on restrictions imposed to some Chinese officials relating to new security law in Honk Kong. China threats with countermeasures and might impose restrictions on U.S. citizens and companies.
The gold to silver ratio trades to the lowest level since February 2020, around 93.68 as the silver price continues to outperform against gold.
Gold Price Technical Analysis
Gold price is 0.28% lower at 1,805 but keeps the positive momentum as long as the price stays above the 1,800 mark. The technical outlook is positive for gold as the price hovers above the major daily moving averages.
On the upside, first resistance for gold price is at 1,813 the daily top. If the gold breaks above 1,813, then the next obstacle would be met at 1,816 the high from July 9 while the next supply zone is at nine-year highs at 1,820 from July 8.
On the contrary, initial support for gold price stands at 1,803 the daily low. A break below might challenge 1,789 the low from July 14 trading session. If the bears continue the pressure, then the next support area stands at 1,745 the 50-day moving average.
Gold Price Daily Chart