Gold Under Pressure As Risk Sentiment Improves

Gold Under Pressure As Risk Sentiment Improves

Gold fell within the previous session, not due to Jerome Powell’s well-rehearsed, cautiously optimistic assessment of the US economy but more likely due to the very fact that he showed few signs of being moved by the outbreak of coronavirus.
On the economy 
Jerome Powell said that that he though the US economy was during a good place; he highlighted the strong market and consumer spending. He added that he couldn't see any reason why the present expansion of the US economy couldn’t continue, which monetary policy was appropriate at its current level. His comments meant that near term expectations of a rate cut were slightly reduced, which might have added some pressure to non yielding gold. 

Powell undeterred by coronavirus
However, possibly of more interest to goldbugs, was that Powell said that the outbreak of the virus has done little to change the expected path folks interest rates. Whilst the Fed will keep an eye fixed on the outbreak and its impact on the Chinese economy and therefore the economies of its trading partners, the Fed doesn’t see it the baseline outlook of the US economy or interest rates changing.

Risk appetite is additionally on the abreast of Wednesday because the number of latest cases of coronavirus within the Hubei province, the worst affected area, was at rock bottom level for a month. Additionally, top doctor Zhong Nanshan has speculated that the virus could peak this month. The markets have responded optimistically. Riskier assets are back in favor whilst shelter gold is declining.

Gold Levels to observe 
On the hour hour chart, the uptrend in gold remains intact. there's line support at $1555-8 which coincides with the 200 sma. 
Immediate support are often seen at $1562 (today’s low) before $1558 (200 sma) and $1555 (trend line support).
On the flipside a move above resistance at $1577 and $1580 could confirm the bullish trend remains intact.