Gold eased lower to start the day as risk rallied and trading since then has been a bit more choppy, as price retested the 100-hour MA (red line) before falling back lower and is now flirting with support around the 23.6 retracement level @ $1,705.29.
The low today hit $1,702.20 and that is helping to limit losses so far with the $1,700 handle also an area that buyers may lean on in the near-term during the sessions ahead.
For now, the near-term bias is more neutral as price keeps below the 100-hour MA but sellers have more work to do in trying to drive further downside momentum in gold.
For buyers, they need to try and keep above the near-term levels above and chase a move back towards testing the 100-hour MA again.
From a fundamental perspective, the market is keeping a more positive risk mood as we look towards European trading. Bonds (lower yields) and equities are playing along with it so that shows the market is agreeing with the risk move so far.
That said, headlines are everything at the moment and it feels like the market could really use another push to sustain the risk rally ahead of the weekend.
The rally based off hopes of the remdesivir treatment is a bit shaky considering the drug has been used in some other countries already, but for now it is just enough to fuel the risk appetite and keep price action barely in favour of risk trades.