The precious yellow metal managed to finish well off the intraday lows in New York after staging an impressive rebound of 88 dollars on Tuesday despite a surge in the US Dollar.
Spot gold surged overnight, as a seven-session decline in the precious metal appears to have drawn bargain hunters after prices inked in an intraday low of $1,465 and bounced to a $1,553 intraday high.
Earlier, spot gold got caught up in a broader market sell-off as coronavirus continued to spread rapidly, with the widespread selling for metals for cash and to cover margin calls emerged.
Meanwhile, the greenback caught the tail wild after the Trump administration proposed an emergency stimulus package.
Treasury Secretary Steven Mnuchin said the administration is asking Congress to approve a $1 trillion relief plan that will include direct checks to Americans, loans and help for small businesses.
Looking ahead, the intraday outlook remains neutral due to the high volatility and extended swings in price directions.
However, the overnight’s advance may improve if spot gold closes above the $1,555 resistance.
If seen then this should trigger further upside coverage to $1,600-30.
However, still note, from the given high risk due to market volatility, trading will continue to come at “high risk” due to the uncertainty given for the market conditions and the massive swing in gold price movement.