At the beginning of this week’s trading, the price of gold continued its downward correction to the $1671 support, but with losses in US stocks on Wall Street and the collapse in crude oil futures prices to the lowest in history, it was natural for safe haven gold to have a momentum to move towards The $1702 resistance before settling around the $1695 level at the time of. Gold is still supported by global concern about the devastating effects of the Corona epidemic economically and humanly. Despite the recent slow pace of infections and deaths of the disease, the lack of a vaccine that ends the disease and the desire of global economies to accelerate the process of opening up global economic activity will increase the state of uncertainty and thus investors' appetite for safe heavens, with gold being one of the most important ones.
The Trump administration and Congress are close to reaching an agreement of a $450 billion aid package to boost the small-business loan program that ran out of money and to add hospital funds and COVID-19 tess. Besides boosting small businesses, Trump said negotiators were looking to "help our hospitals", especially the hard-hit rural healthcare providers. The House of Representatives announced that it might meet on Wednesday to register a vote on the pending package, and under this agreement, there will be 300 billion dollars for the salary program for small companies, and 50 billion dollars will be available to the disaster fund for small companies. In addition, it will bring $75 billion to hospitals and $25 billion for testing.
Asian stocks fell during Tuesday's trading after US oil futures fell below zero as crude oil storage almost filled amid global abundance as demand collapsed due to the epidemic. Shares fell in Tokyo, Hong Kong and Shanghai, but New York stock futures rose after the S&P500 fell 1.8% overnight, giving up some big gains from last week. In a stunning development, the cost of delivering a barrel of US crude oil in May fell to negative $37.63. It was almost $60 at the beginning of the year.
According to gold technical analysis: In light of the global economic depression from the spread of the deadly Corona epidemic, investor appetite for safe havens will remain strong, which may support gains for gold for a longer period, and as long as the price of the yellow metal is stable around the $1700 resistance, it will remain ready to test stronger bullish levels, the closest are currently 1715, 1732 and 1775, respectively, and the last level will be important to the break of the next psychological resistance at $1,800. I still prefer to buy gold from every lower level and the closest support levels for gold are now 1685, 1670 and 1658, respectively.
