Gold fails to benefit from recent risk aversion, slips below $1,500
- Gold remains on the back foot amid fresh risk-off.
- US President fails to provide the much-awaited stimulus, stock futures tank.
- RBNZ and the Aussie government announced fresh measures, Eurobonds for coronavirus signalled.
- Japanese media hint restrictions on the entry of US travellers.
Gold prices drop 0.80% to $1,486, intraday low near $1,483, after the fresh risk-off in the markets amid the early Monday morning in Asia. The latest catalysts come from the US where policymakers keep failing to announce the much-awaited stimulus while the coronavirus (COVID-19) numbers are on a spike.
US policymakers fail to offer the stimulus…
The US Senate members fail to pass onto the much-awaited COVID-19 Bill during the first round of voting. The opposition Democrats are indicating further revision to the ruling Republicans, which in turn could delay the rolling out of the much-awaited stimulus.
US President Donald Trump earlier failed to provide any signals for the economic aid that initially triggered the risk-off.
It should also be noted that the US is now the third-largest in terms of the virus infection after Italy and China.
While portraying the risk, the US stock futures tank to trigger the “limit down” amid the initial minutes. Further, oil also dropped more than 9% following the fresh risk aversion wave.
Also weighing on the risk-tone could be news from Japan that signal the Asian nation may soon ban entries of the US travellers.
During the weekend, the Australian government announced the second stimulus whereas RBNZ also took heavy measures to ward off the economic implications of the disease.
Investors will now keep eyes on the US headlines and further global measures to combat the pandemic for immediate direction.
Technical Analysis
Buyers will wait for entry beyond 200-day SMA level of $1,505 while sellers may target November low near $1,445.