- Gold buyers are struggling in a flood of news in Asia.
- The increasing chances of recovery from China and the bearish catalysts of the Pacific countries allow buyers to hope in a large risk.
- Fears of a negative Fed rate and a troubling US economy add to the demand for safe haven.
- The strength of the US dollar challenges bullion buyers before jobless claims in the United States.
Gold prices remain moderately offered around $ 1,714, down 0.10% on a day, during the Asian session on Thursday. Ingot recently broke two-day winning streak American dollar recovers the initial losses to extend the gains of the previous day.
USD retreated earlier after comments by US President Donald Trump and Treasury Secretary Steve Mnuchin rekindled hopes of negation Fed rate. It should be mentioned that Federal Reserve policymakers, including President Powell, did their best to rule out such chances the day before.
The American currency also seems to take the indices of the American-Chinese battle as well as growing fears of the wave 2.0 of the coronavirus (COVID-19).
That said, the Dollar Index (DXY), a gauge of the greenback’s strength against major currencies, brings auctions to nearly 100.26, up for the second day, at press time.
Traders are likely to keep their eyes on US unemployment benefit claims for more direction while trade / virus updates will also be key. Regarding the US data, Westpac said: “The past two months have been difficult to read. Media forecasts forecast 2.5 million additional claims last week and continuing claims the previous week at 25.1 million. “
Only a daily closing beyond a descent of a month resistance , currently close to $ 1,719 / 20, can strengthen the upward momentum to April’s high of nearly $ 1,748. Failure to do so may recall figures below $ 1,700 in the charts.