Gold Intraday: Drifting Sideways

Gold Intraday: Drifting Sideways

Yesterday, spot gold marked a day-low near $1,704 before bouncing back to $1,725. While the views on economic outlook are mixed, gold price may still drift sideways...

Yesterday, spot gold marked a day-low near $1,704 before bouncing back to $1,725, still down 0.3% on day. The three major U.S. equity indices were quickly recouping their early losses and ended higher. Investors were initially scared of a second wave of coronavirus, but sentiment was lifted by the Federal Reserve's announcement that it'll start buying individual U.S. corporate bonds.

While the views on economic outlook are mixed, gold price may still drift sideways.

From a technical point of view, spot gold is trading well within its consolidation range as shown the 1-hour chart. Nevertheless, within the shorter term, it's going to have formed a higher-low yesterday, following a rebound from the day-low of June 5 at $1,670. the extent at $1,704 could also be considered because the nearest support, with prices trending to check its 1st and 2nd resistance at $1,745 and $1,765 respectively. Alternatively, an opportunity below $1,704 might open a path to subsequent supports at $1,692 and $1,670.