Gold prices recover from the intraday low of $1,728.84 to currently around $1,733, up 0.12% on a day, during the early Friday’s Asian session. It has crossed the 3 weeks high setting back the high of April 24.

After hitting a yearly high and the highest level since 2013, gold prices have been trading sideways for the last month. Despite the fact that the US Dollar has started gaining strength and equity markets have rallied higher, gold prices have not raised much after an impressive price high at the early stages of corona virus pandemic.

Us senate passed a bill enabling the administration to levy sanctions on Chinese officials involved in the Xinjiang case which turned the market to be risk-averse earlier this day. A separate Republican bill, which is in pipeline, enabling President Trump to sanction China during the virus outbreak investigation might also be an add-on to the risk aversion wave.

Additionally, Due to an increase in the corona virus numbers has created a fear of the corona virus wave is prevailing around the globe. As a result, the global policymakers rush for economic restart might take a delay.

Along with all these catalysts, US 10-year Treasury yields have paused the previous two-day declines whereas stocks in Japan post mild gains by the press time.

All the catalyst is expected to give gold a bullish way. If the bull trend continues we could see XAU/USD  breaking 1742.48 (R1) and aim for next 1752.17 (R2) and if the bear markets take over then we can expect it to break at 1717.06 (S1) and aim for 1702.33 (S2).

XAU/USD 1 Hour Chart:

Support:  1717.06 (S1), 1701.33 (S2), 1675.91 (S3).

Resistance: 1742.48 (R1), 1752.17 (R2), 1777.59 (R3).

All the catalysts have driven gold to a rise which creates an interest among the investors.