There has been an increase in selling interest from fast money accounts lately, possibly due to risk sentiment and the US dollar, both of which are failing to buckle fully.
But even yesterday's frail risk sentiment in equities after the comments from US President Trump renewed trade war with China has been unable to breathe new life into gold. Instead, gold investors are focusing on the economic enthusiasm spilling over from the relaxation in social distancing rules and business reopening around the world.
Based on price action alone this week, the market appears to be adopting a more neutral stance for the time being with $1,720 and $1,740 expected to provide reasonably good resistance in the short term. While long term strategic buyers will adequately cover dips to $1675
Overall, the long-term view remains in place. Still, with economic data likely to pivot more positive soon, many investors have taken to the sidelines waiting for better levels to engage.