- Gold continued to gain ground for the fourth consecutive session on Friday.
- The cautious mood prevails, the weaker greenback remained favorable.
- Bulls should aim to recheck multi-year summits near the region at $ 1,748.
Gold finally broke out of its bullish consolidation phase and hit new multi-week highs around the region of $ 1738-39 in the past hour.
The safe haven continued this week’s positive movement and continued to gain ground for the fourth consecutive session on Friday. The upswing was supported by widespread cautious mood amid fears about the second wave of coronavirus infections and the loss of hope for a rapid global economic recovery.
This, coupled with a new US dollars sales bias further supported demand for the dollar-denominated product and remained buoyant. The greenback has struggled to capitalize on the overnight positive movement sparked by comments from US President Donald Trump advocating a stronger dollar.
In an interview with Fox Business Network, Trump said it was good to have a strong dollar and that it would help the economy during the recovery from the coronavirus crisis. The remarks arrived a day after the fed President Jerome Powell rejected the idea of using negative interest rates, although he did little to impress American bulls.
Apart from that, the rise could also be attributed to certain technical purchases after the bullish breakthrough of the previous day, a symmetrical triangle resistance near the region 1720-22 $. Therefore, some follow-up strength, returning to multi-year highs near the region of $ 1,747-48, now seems a separate possibility.
Friday’s US economic report highlights monthly publication Retail sales The figures. The data could influence the price dynamics in USD and generate significant trading opportunities later at the start of the North American session.