Gold futures edged lower Tuesday, slipping just under the psychologically important $1,800-an-ounce level.
Investors remain in “wait-and-see mode,” with the $1,815-an-ounce level seen as “solid” short-term resistance, said Carlo Alberto De Casa, chief analyst at ActivTrades, in a note.
It would take a fall below $1,790 an ounce to denote weakness, he said, while reiterating that gold’s recent rally, which saw it touch levels last seen in 2011, was driven by “massive inflows of ETF demand, while jewelry and industrial demand are fragile.
“Any change on the fundamental side will be reflected in the price, but so far markets consider gold is quite fairly priced in the area of $1,800,” he said.
Analysts said gold remained underpinned by concerns over a continued rise in COVID-19 infections in the U.S. and elsewhere.
California Gov. Gavin Newsom ordered a rollback of indoor operations at restaurants as well as bars, zoos, wineries, museums, and movie theaters.
The U.S. death toll stands at 135,615 and is rising again after it had started to flatten in mid-to-late April. There are now 41 U.S. states and regions showing increasing cases over a 14-day period, according to a New York Times tracker.