Good morning, fellas.

On Tuesday, eyes will remain on the European CPI, final GDP and currency account figures, which can help determine the price action in Euro’s currency pairs. Besides, the US CB consumer confidence figures will remain the most highlighted economic event of the day, and it may drive movement in the US dollar and gold. Economists are expecting a drop in consumer confidence, which may keep dollar bearish today.

Looking at the precious metal gold, the prices were flashing red and dropped 0.37% at $1,637.1, mainly due to the equity market flashing green watch took some gains in the wake of some easing in the cases of coronavirus. The US President Donald Trump suggesting no to nationwide stay-at-home order also gave support the risk sentiment. At press time, GOLD is currently trading at 1,636.30, representing 0.42% losses on the day and consolidates in the range between 1,633.90 and 1,645.30.

Gold futures failed to hold their gains from the last session and dropped by 0.37% at $1,637.1 by 9:34 PM ET (2:34 GMT) while Asian equities markets registered gains today because China announced a Manufacturing Purchasing Managers’ Index reading of 52 for March, against expectations of a contraction.

However, the North American stocks continued their rise with a 3.4% advance in the S&P 500, adding to sizeable gains of the previous week. Meanwhile, US Treasuries increased on a 5bp selloff in the 30-year, with 10-year yields trading higher by 2bps to 0.70%.

It is worth mentioning that the recovery in the Wall Street came after the easing in new COVID-19 cases in Europe, in nations including Italy and Spain. Whereas, the United Kingdom also indicated that there are fewer chances of further lockdown measures while singling continued struggles against the coronavirus for twelve weeks.

In the USA, President Donald Trump said that Americans need to get back to work. Additionally, Trump warned that the situation may get worse in the coming days. So as a result, the US is extending the lockdowns through mid-April.

Daily Support and Resistance
S1 1583.78
S2 1602.08
S3 1612.52
Pivot Point 1620.38
R1 1630.82
R2 1638.68
R3 1656.98

The technical side of gold has remained mostly unchanged as prices are following the identical trading range of 1,594 – 1,642. The precious metal is likely to find immediate support around 1,609 and below this, the next support is likely to be found around 1,594. Conversely, the bullish breakout of 1,623 levels can lead gold prices towards the next resistance level of 1,642. Odds of a bearish trend remain high considering the recent candles on the 4-hour chart. Good luck!