01.05 - Gold prices remain modestly changed despite broad risk-off sentiment

Despite the recent risk-off sentiment, Gold prices remain more or less unchanged while flashing $1,687 as a quote during the Asian session on Friday. While the US-China trade war and downbeat catalysts from Japan seem to have been the major risk-signals off-late, US dollar pullback is likely behind the yellow metal’s lack of performance.

As if the current coronavirus (COVID-19) crisis isn’t enough for the world, US President Donald Trump offered additional challenges to the market while firing trade-war shots towards China. In return, Chinese state media attacked US Secretary of State Mike Pompeo with words like “enemy of humankind”, “highly venomous”, etc.

While a three-week-old support line near $1,680 acts as the immediate support, 200-bar SMA level on the four-hour chart, near $1,640 becomes the key. On the upside, one-week-old falling trend line and the monthly resistance line since April 14, respectively near $1,720 and $1,733, challenge the bulls.