Gold buyers attack $1,780 while flashing an intraday high of $1,779.71 during early Wednesday. The bright metal dropped the heaviest in over a month the previous day as risk-off mood put a bid under the US dollar. However, an absence of Japanese and Chinese traders seems to restrict the bullion’s corrective pullback.
Even so, the commodity prices cheer 0.20% intraday gains of S&P 500 Futures while paying a little to the US dollar pullback and the latest coronavirus (COVID-19) updates from Japan and Canada.
Market sentiment restores the previous cautious optimism after US Treasury Secretary Janet Yellen reversed her initial comments backing the rate hike. Also on the positive side could be comments from Federal Reserve Bank of Minneapolis President Neel Kashkari while turns down the need for any action unless inflation surprises.
Alternatively, Japan aims to extend the third state of emergency in Tokyo and surrounding prefectures beyond the May 11 deadline. Additionally, Canada escalates virus-led activity restrictions in Alberta province as pandemic resurgence gains momentum.
Looking forward, cautious sentiment ahead of the key US ISM Services PMI and ADP Employment Change for April could keep restricting gold’s short-term upside. However, the latest challenges to the risk appetite flash downside risk for the bullion prices.
Gold prices stay above $1,766-69 support confluence comprising 50-day and 21-day EMA, as well as a three-week-old ascending trend line, which in turn keeps the buyers hopeful. However, a clear break above $1,780 becomes necessary for the bulls to attack the $1,800 threshold.