Gold: Off session highs despite losses in the US stock futures

• Gold has pulled back from session highs near $1,546. 
• The S&P 500 futures are flashing red, while stocks in China are reporting gains. 
• The US monetary and fiscal stimulus could bode well for the zero-yielding safe-haven metal.

Gold is currently trading at $1,533 per Oz, having set a session high of $1,546 three hours ago. So far, the yellow metal has traded well within Tuesday's price range of $1,554 to $1,465.

The yellow metal has pulled back from session highs despite the losses in the US stock futures. At press time, the futures tied to the S&P 500 are reporting a 3% loss. Meanwhile, stocks in Australia are down over 4%, while those in Hang Seng are down 1%. 

However, Japan's Nikkei index and the Shanghai Composite index are adding 1.35% and 0.65%, respectively and could be capping the upside in gold. 

Additionally, the 10-year US treasury yield is trading above 1% for the first time since March 5, having bottomed out a record low of 0.35% on March 9. 

The metal may drop into the negative below the opening price of $1,527 if the US yields extend gains, powering stronger gains in the dollar - gold's biggest nemesis. The dollar index is currently trading near 99.40, having hit a three-week high of 99.83 on Tuesday. 

That said, the downside looks limited as both White House and the Fed have moved to soften the economic blow of the coronavirus pandemic. 

The Trump administration said it plans to send checks directly to Americans as part of a $1 trillion stimulus package. Meanwhile, the Federal Reserve said it would launch a lending facility to support short-term commercial-debt markets to alleviate the pressure in the funding markets, short term credit, as well as equities. The central bank cut rates to zero on Sunday and launched a quantitative easing program worth $700 billion per month.

Other major central banks have cut rates recently and stand ready to do more if required. 

Technical levels