Good morning, fellas.

The yellow metal gold closed at $1763.90 after placing a high of $1768.96 and a low of $1754.45, while the overall movement of gold remained flat throughout the day. Gold prices drifted sideways on Thursday on the back of increased coronavirus cases and mounting economic tolls, which kept the investors on edge. The gold prices fell from the last session’s 7.5 years high level on Thursday and started moving in the consolidation phase.

Gold prices remained flat mostly the day as it was unable to find a substantial move towards any direction as mixed sentiments were present in the market. Gold was well supported by the increasing number of infectious cases in the United States and worldwide.

Besides, the yellow metal gold was under pressure at the same time from the economic concerns, which were supported by positive data from across the world but was also under pressure due to potential lockdown, given the rising fears of the second wave of coronavirus. However, the market was taking into account that what kind of consequences the second wave of coronavirus could have on the economy, and the uncertainty behind this kept the gold prices on the upper edge on Thursday.

On the data front, the US’s releases were also mixed, which kept investors confused and caused a consolidated move in gold prices. At 17:30 GMT, the Core Durable Goods Orders for May surged to 4.0% against the expected 2.1% and supported the US dollar. The Durable Goods Orders for May exceeded the expectations of 10.3% and came in as 15.8% and helped the US dollar. However, the Final GDP for the quarter remained flat at -5.0%.

The Unemployment Claims last week were reported as 1.480M against the forecasted 1.320M and weighed on the US dollar. The Goods Trade Balance from the US for May also showed a deficit of 74.3B against the anticipated deficit by 68.0B and weighed heavily on the US dollar. The US’s mixed data also added in the flat movement of gold prices on Thursday as the durable goods order was against gold, but unemployment claims and goods trade balance was in support of gold prices on Thursday.

On the other hand, the US-China dispute was again intensified after the comments of White House Advisor, Peter Navarro, on Wednesday, who said that if American lobsters’ purchase commitments were not met, then the United States Trade Representative will impose reciprocal tariffs on China seafood industry. The commitment was made in the phase-one trade deal by China to purchase $150M worth of American lobsters. This statement from Navarro also added strength in gold prices as it was a threat to escalate the US-China tussles.

Daily Technical Levels

Support Resistance

1763.26 1778.76

1755.93 1786.93

1747.76 1794.26

Pivot Point: 1771.43

GOLD is trading at 1,762 level, holding right above an immediate support level of 1,760. Above this, the precious metal gold can lead the XAU/USD prices towards 1,773 and 1,778 while support continues to hold around 1,760 and 1,753. Let’s wait for a breakout before taking any gold trade, but stay tunned for trading signals. Good luck!