Gold Plunged Amid Stronger Dollar – What to Expect Today?
Arslan Butt • 1 min read
Today in the early Asian session, the safe haven metal prices continue to gain some traction and rose 0.48% to $1,485 because all traders turned to gold due to intensifying fears of global recession in the wake of coronavirus lockdowns.
However, gold failed to break the $1500 level and faced rejection near $1500 before few mints of press time. As of writing, gold is currently trading at 1,485.35. Gold futures surged nearly 0.48% to $1,485 as equity traders continue to be unimpressed with struggles of governments worldwide to control the COVID-19 novel coronavirus pandemic.
The recession fears are increasing, so the European Central Bank announced a €750 billion ($821.23 billion) Pandemic Emergency Purchase Programme on Wednesday that will purchase securities to support European economies amid the outbreak. The ECB also said about to launch a new temporary asset purchase program of private and public sector securities to control the severe risks to the monetary policy transmission mechanism. Considering the increased stimulus programs from global banks, investors are finding safe haven appeal in the US dollar and keeping gold bearish.
Daily Support and Resistance
Pivot Point 1497.38
GOLD prices are trading bearish, falling from 1,545 level to 1,471 by the time of writing this update. Most of the selling in gold is triggered due to increased demand for the US dollar. Investors seem to feel more secure in dollars due to aggressive actions been taken by the US government and central bank to fight the coronavirus.
Anyway, gold is likely to find support around 1,448 levels today, and this level can help drive bullish reversal. But in case of a bearish breakout, gold prices can drop further until 1,415. On the higher side, resistance stays at 1,504. The bullish bias remains solid above 1,447 area.