Through the first three weeks of March, bullion hasn’t been a viable insurance policy against the COVID-19 pandemic. April gold futures are in the midst of a six-session losing streak that has taken prices from above $1700.0 to below $1500.0. Counterintuitive selling continues to baffle investors that view gold as being the ultimate safe-haven asset.

So, why the weakness in bullion? Given aggressive global QE from central banks, one is inclined to think that investors would favor gold as a hedge against inevitable inflation. For now, this is not the case. April gold futures are within $90 of yearly lows and holding in daily bearish territory.

April Gold Remains In A Daily Technical Downtrend

For the past three sessions, April gold has drawn heavy two-way participation near the $1500.0 handle. This zone is below the current wave 38% Retracement (1547.7), ensuring the validity of the daily downtrend.

Here are two support and resistance levels to watch going into midweek trade:

• Resistance(1): 38% Retracement, 1547.7
• Support(1): 2020 Low, 1450.9

Overview: In the wake of nearly unprecedented FED QE, the markets are in a state of flux. Subsequently, equities are holding on to early-session gains and gold is also showing a bit of resilience. At this point, the best term to describe today’s action across the equities and bullion markets is “cautious optimism.”

It’s an elementary point, but the markets are eagerly awaiting Congressional approval of the emergency coronavirus aid bill. In addition, traders and investors expect some sort of blockbuster government stimulus package to be announced anytime. If these events materialize by Wednesday’s close, U.S.-based risk assets may be in a position to close the week on a positive note.