The gold price is slightly suffering against the renewed strength of the greenback. The spot price dropped below $1,700 once again, but the decline has been modest so far and it is not changing the main trend, which remains supportive for bullion. It will be crucial for the spot price to hold above $1,670, as this level has proven a strong support in recent weeks with the price rebounding when it has neared it.
From a fundamental point of view, there are some concerns about physical demand, particularly jewellery, which plummeted in Q1 2020 due to coronavirus, with investors assessing if this decline will be completely covered by the rise in investment demand.
