Gold on Defense; Sentiment Deteriorated by Trump’s Two Weeks
Gold is losing all gains from the day after the release of a better-than-expected ADP. Market sentiment has deteriorated after Donald Trump has claimed that the US faces two tough weeks over COVID-19.
Last month, the US president compared the coronavirus to the flu. Now he declares the country must prepare for two weeks of fighting against the virus, which has killed 3,000 people in the US. And up to 240,000 deaths are expected.
The divergence of opinions has confused the market again. Wall Street fell sharply. The dollar is trading higher while gold is on the defensive trading below 1,600.
ADP Employment Falls to 27 Thousand Payrolls
The US American Provider of Human Resources Management Software and Services (ADP) employment report has shown that during March, 27,000 people lost private jobs. The market expects the destruction of 150,000 jobs.
On the other hand, US manufacturing PMIs are reporting sharp declines in their March indexes.
The advance of the coronavirus continues strongly throughout the world. The focus continues in Europe, with Italy and Spain being the most affected countries. Still, the impact is most significant in the United States. Trump confirmed that the country is facing two tough weeks.
The number of cases globally already amounts to 877 thousand people, with more than 43,500 deaths reported and nearly 185,000 recovered.
Europe has already reported more than 445,000 cases and more than 30,000 deaths. Italy is the most affected, with 105 thousand cases and 12,500 deaths. Spain follows with 102 thousand cases and more than 9 thousand deaths. Germany has 73,000 infected cases.
The United States has positioned itself as the country with the most cases in the world, with about 190 thousand confirmed people. Those that have not been tested, which is supposed to be a vast majority, are not counted. The US reported that more than 4,000 people lost their lives at the hands of COVID-19.
Philadelphia Gold and Silver Index in Consolidation Mode
The gold is trading lower as a reaction to the strength of the dollar, and it is deteriorating market sentiment. In that framework, the XAU/USD has been trading in consolidation mode.
Right now, the XAU/USD is operating at 1,576, representing a decrease of 0.03%. It showed a minimum fall. Still, it signifies a reduction from the maximum of the day at 1.600 and the fourth negative session of the gold.
The chart is turning negative, and the strength of the dollar is pushing the gold prices further down. In any case, the XAU/USD maintains support at 1,570, 1,550, and 1,510.
