Gold has been quite a tricky instrument to trade in recent days with high volatility & wider spreads caused due to offsets in the physical gold market & the spot prices in gold. The major development that came in the yellow metal was the relentless buying to sudden stop.
Bloomberg added that Russia's buying of gold in recent years has been a pillar of support for the market. According to report the Bank Rossii holds around 75million ounces of gold. As the decision was announced by Russia's Central Bank that it will not be buying any more of the yellow metal as of 01/04/2020 with no explanation given, saw the gold prices fall below $1600.
As for today I have a bearish outlook, and prices might fall to $1500 in coming days rather than going up to $1700 which was the outlook in the start of the year, A break below 1588.48 will surely solidify the bearish move. Other key price points will the 100DMA & 200DMA which are 1547.17 & 1512.96 respectively are worth looking out for. As market awaits the jobs data from US, the price of United States Dollar will have a strong effect on gold prices going forward.