Gold dips on easing virus fears
Spot gold edged lower in US trading on Tuesday, coming under fresh pressure as dip in new coronavirus cases improved sentiment and prompted investors into riskier assets.
The yellow metal price remained resilient to dollar’s dip after Fed Chief Powell’s testimony and holding in red.
Reversal pattern is forming on daily chart after Monday’s trading ended in Doji candle and signaled that three-day recovery lost traction, with today’s close in red to complete the pattern and risk further weakness.
Fading bullish momentum and RSI turning south support scenario, however, rising stochastic is conflicting.
Close below 20DMA ($1566) would add to negative signals and expose rising 30DMA ($1561).
Cracked Fibo barrier at $1575 (61.8% of $1593/$1547, where recovery attempt stalled) mark pivotal point and firm break here would neutralize bearish threats.
Res: 1575; 1577; 1582; 1593
Sup: 1566; 1561; 1552; 1547