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Gold Intraday: End of Technical Rebound?

The three major U.S. stock indices closed up after opening lower yesterday, with Nasdaq rising 1.3%. The strength in oil prices pushed up energy shares, while the tech stocks also lead the advance. This maybe another signal that the coronavirus fears are fading and investors' risk appetite is returning.

Spot gold also ended up 0.1% higher yesterday, but around 0.7% off form its intraday high. It is yet to be confirmed that whether the two-day rebound in gold price is a technical one or an upturn, as key data U.S. April non-farm payrolls report is approaching this Friday.

From a technical point of view, intraday gold outlook remains bearish as shown on the 1-hour chart. It has retreated after touching a bearish trend line drawn from April 24, and has broken below a rising wedge. The level at $1,711 might be considered as the nearest intraday resistance, while a break below the nearest support at $1,689 is likely to trigger a further decline to the next support at $1,679. Alternatively, a solid upside break-through $1,711 would suggest an upturn and open a path to $1,722 and $1,730.

Source: TradingView, Gain Capital

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