Gold Price Analysis: Gold prints a corrective pullback from an intraday low of $1,723 to around $1,725, down 0.23% intraday, during the early Monday. Even so, the yellow metal drops for the first time in three days as the US dollar trims Friday’s losses amid fresh coronavirus (COVID-19) fears and a lack of major data/events during the Easter Monday holiday.
Gold Price Analysis
Having recovered from 92.83 on Friday, the US dollar index (DXY) picks up bids to 93.01 by press time. While strong US employment figures and a pullback in the US Treasury yields could be spotted for the greenback’s recovery moves on Friday, the latest run-up in the US 10-year bond coupon seems to renew reflation fears and favor the USD due to its safe-haven allure.
Also challenging the market sentiment could be the record increase in India’s covid cases and two-month high infections in China. Further, an off in major markets for the second consecutive day pushes global traders towards consolidation ahead of another important US data.
It’s worth mentioning that the covid woes in Europe and the Sino-American tussles are an extra burden to the market sentiment. Amid these plays, S&P 500 Futures print 0.40% intraday gains whereas the US 10-year Treasury yields regain 1.72% level by the time of writing.
Moving on, ISM Services PMI, expected 58.5 versus 55.3 prior, for March will be crucial after the recent improvement in the US data. Any disappointment should have an easy way to recall the gold sellers.