Gold edged higher during the early European session on Wednesday and is currently placed at over one-month tops, around the $1606 region.

Following a brief consolidation through the early part of Wednesday’s trading session, the precious metal regained some positive traction and added to the previous session’s strong positive move.

Gold unaffected by a combination of negative factors

The commodity on Tuesday rallied hard amid renewed pessimism over deepening economic fallout from the coronavirus outbreak in China, especially after Apple’s warning that it will miss the sales target.

Meanwhile, the overnight strong intraday positive momentum seemed rather unaffected by sustained US dollar buying interest, which tends to undermine demand for the dollar-denominated commodity.

The greenback stood tall near multi-month tops and was further supported by a modest pickup in the US Treasury bond yields, albeit did little to prompt any fresh selling around the non-yielding yellow metal.

Bulls even shrugged off receding demand for traditional safe-haven assets, led a recovery in the global risk sentiment amid a slowdown in the number of new cases infected by the deadly virus.

Market participants now look forward to the US economic docket – featuring the release of housing market data and Producer Price Index. This coupled with speeches by influential FOMC members might provide some impetus and produce some meaningful trading opportunities.

Technical levels to watch

XAU/USD

OVERVIEW
Today last price1604.91
Today Daily Change2.13
Today Daily Change %0.13
Today daily open1602.78
TRENDS
Daily SMA201573.17
Daily SMA501541.84
Daily SMA1001511.52
Daily SMA2001469.31
LEVELS
Previous Daily High1605.15
Previous Daily Low1580.95
Previous Weekly High1584.36
Previous Weekly Low1561.99
Previous Monthly High1611.53
Previous Monthly Low1517.1
Daily Fibonacci 38.2%1595.91
Daily Fibonacci 61.8%1590.19
Daily Pivot Point S11587.44
Daily Pivot Point S21572.09
Daily Pivot Point S31563.24
Daily Pivot Point R11611.64
Daily Pivot Point R21620.49
Daily Pivot Point R31635.84