The precious metal was trading in a locked range majorly between 1803 to 1809 in the past few days, until yesterday the American session kicked in, dragging the gold down below 1800 floor with a robust dollar. It remains stagnant around the 1797 level during Asian session; however, this may not be a solid signal for sellers to enter provided the ongoing tension between the two biggest nations and the global pandemic, which gold holds its place as a safe haven hedging tool.

RSI almost touching its oversold level, expect bulls will take back over control in the mid-long term. In a nearer term, sellers still see hopes if the yellow metal manages to maintain its level or even lower to 1792. Not to mention China is expecting a 180-degree recovery in the next quarter, meaning if the U.S. economy doesn’t pick up, it will act as a huge obstacle for the greenback to surge.

Daily pivot 1801.26

S1 – 1791.03 R1 – 1807.51

S2 – 1784.79 R2 – 1817.74

S3 – 1768.31 R3 – 1834.21

Intraday traders may seek to enter at day-low 1795 and seek to take profit at 1799 for small return, with a lost protection level at 1791.

Analyzed by: Mr. Ronald Wu，Independent Analyst