(25 JUNE 2020)DAILY MARKET BRIEF 2: Gold is down after a peak to $1780

<p>Gold is down after a peak to $1780 per oz on Wednesday, as investors simultaneously liquidate their gold holdings along with their risky positions. But risk averse investors will likely dare to open fresh long positions for a further advance toward the $1800 mark to hedge against a further turmoil in the market. The downside should remain capped near the $1750/1720 area (former resistance turns support / 50-day moving average). The EURUSD shifts lower on the back of a deterioration in global risk appetite and firmer US dollar. But there is room before ringing the alarm bell. From a technical standpoint, the EURUSD will remain in the bullish trend above 1.1160, the major 38.2% Fibonacci support on April – June rebound. Cable is preparing to extend gains below the 50/100-day moving average zone, 1.2415/1.2400. WTI retraces below the $38 per barrel on the back of rising US inventories and weakening demand prospects on the back of the IMF’s downside revision to its global growth forecast.</p>