At the starting of Tuesday’s Asian session, the safe haven metal prices have recovered from the multi-week low and registered 0.36% gains to $1,512 earlier on the day despite the risk-reset in the market. As of writing, gold is currently trading at 1,488.15 and consolidates in the range between 1,482.90 – 1,519.20.

Gold prices dropped below the $1,500 mark although US stock markets experienced their worst drop in more than three decades on Monday. All major indices recorded double-digit losses despite a global effort by central banks to avoid recession.

The global financial markets are witnessing risk reset due to news concerning the US Coronavirus Relief Bill. The Republican-backed bill recently crossed the House of Representatives and will be voted in the Senate.

On the other hand, cases from China continue to decrease but offered no relief, whereas the Philippines’ stopping of Forex and Bond trading seems to catch the market concentration. Moreover, Japan’s Finance Minister suggested holding calls with G7 finance ministers on Tuesday.

As a result, the US 10-year treasury yields stay moderately positive near 0.772% while stocks in Japan lost 0.30% to 16,990.

Looking forward, traders will pay some attention to the economic calendar today. The US Retail Sales for February, expected at 0.2% MoM against 0.3% previous, will be important to watch.

Daily Support and Resistance
S1 1304.41
S2 1404.11
S3 1456.63
Pivot Point 1503.8
R1 1556.33
R2 1603.5
R3 1703.19

The precious metal GOLD has been one of the biggest market movers as investors still believe that the rate cut by the Federal Reserve isn’t sufficient to accommodate the economic slowdown caused by a coronavirus. Anyhow, the precious metal is likely to face immediate resistance around 1,517 area along with support around 1,485 level. Breakout of this range on the lower side may open further room for selling until 1,463 and 1,451. Whereas, the bullish breakout of 1,517 level can drive buying until 1,532 and 1,573.

Good luck!