Today in the Asian trading hours, the safe haven metal prices dropped sightly from the 7-year high to $1,726, representing 0.10% declines on the day due to the US dollar recovering its previous losses as United States President Donald Trump renewed expectations that some of the states may be open for business by May 1. Although, the broad risk-off market sentiment keeps the gold prices near multi-month highs. At the time of writing, GOLD is currently trading at 1,741.80 and consolidating in the range between 1,740.35 and 1,759.70.

Gold futures gained over 2% in the previous session to hit their highest level since 2012, as investors gathered to the yellow metal in the aftermath of the announcement. But they gave up these gains as they lost 0.93% at $1,752.50 by 09:41 PM ET (02:41 AM GMT) in the current session.

The risk-off market sentiment got further fueled after the International Monetary Fund stated that the COVID-19 pandemic could cause the global economy to drop by 3% in 2020, the biggest collapse since the Great Depression.

At the USD front, the US dollar started to erase its previous day declines mainly after Trump renewed expectations that some of the states may be open for business by May 1, while Treasury yields and stock futures are down.

However, the fresh rise in the global cases of the coronavirus (COVID-19), overr two million infections and over 150,000 death toll, is indicating the risk-off market sentiment during the day ahead. The reason behind the risk-off market sentiment could also be the market estimate that the US and the UK are still three to four weeks away from the peak. As a result, the US 10-year Treasury yields and the stock futures remain under pressure with mild losses.

On the other hand, the International Monetary Fund (IMF) fueled the fears of global slowdown while revising its 2020 GDP forecast to -3.0%, while the safe haven metal also got support from it. As per Livemint, “Gold exchange-traded funds or ETFs continued to see inflow. The holdings SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.8% to 1,017.59.”

Looking forward, the US data, including Retail Sales, activity numbers and the Fed’s Beige Book, will be key to watch. The virus updates could also be in the driver’s seat.

Daily Support and Resistance
S1 1651.48
S2 1690.08
S3 1709.63
Pivot Point 1728.68
R1 1748.23
R2 1767.28
R3 1805.88

The precious metal gold is on a bullish move in the wake of COVID-19 concerns, which is why its pricing has already soared to 1,747 high, but currently it is retracing down to trade at 1,726 level. On Wednesday, the yellow metal is likely to find support around 1,715, which can keep the gold in a bullish trend. An immediate resistance prevails around 1,738 and 1,747. Overall, trading bias remains bullish for gold today.