Gold started the week with a modest decline, with the price playing with the $1,580 level. The main trend remains positive but for further rallies we would need some fresh impetus, as stock markets are still in a risk on scenario, with many indices at historical highs, while the US Dollar remains strong.
These two factors make further recoveries for bullion more complicated, given the scenario where markets are still pricing the impact of coronavirus on economy as relatively modest. The first resistance is now placed at $1,585, followed by $1,592 and by the psychological threshold of $1,600.
