Gold’s Bullish Bias Dominates Amid Increased COVID-19 & Weaker Dollar

Arslan Butt•Monday, April 6, 2020•1 min read

The safe haven metal prices were flashing green and rose to 1,660 level, but the gains are limited in GOLD because traders are still cautious about the continuing economic turmoil. In short, traders are in a “Wait and See Mode” because they want more clarity and more news. The yellow metal prices are currently trading at 1,659.90 and consolidating in the range between 1,638.30 and 1,660.65.

On the positive side, the headline recently gave support to the gold prices that the three Swiss refineries in Ticino, Europe’s biggest gold refiner, announced yesterday that they got permission to open their factories on a limited basis. This statement will ease the supply concerns which are caused by the coronavirus lockdowns and transport stops.

On the other hand, the US Bureau of Labor Statistics announced a 701,000 reduction in non-farm payrolls, against the expectations of a 100,000-loss.

Daily Support and Resistance
S1 1576.16
S2 1596.66
S3 1607.74
Pivot Point 1617.15
R1 1628.24
R2 1637.65
R3 1658.14
Gold continues to trade in a tight trading range of 1,620 – 1,608, where an overall trading bias remains bullish. As we can see on the 4-hour chart, gold has immediate resistance at 1,619, which is extended by the double top and descending trendline pattern.

Worse than expected, US NFP figures are likely to trigger a bullish breakout and lead gold prices towards the next target level of 1,633 and 1,642. Alternatively, a bearish breakout can lead to gold prices lower to 1,594 areas. The bullish bias remains strong. Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.