- A combination of support factors pushed gold up for the fourth consecutive session.
- The bearish mood of the market was perceived to benefit from the safe haven status of the goods.
- The macro-data US macroeconomic USD sale gave the yellow metal an extra boost.
Gold Friday continued to gain ground for the fourth consecutive session and intraday buying interest picked up at the start of the North American session. Commodity was last seen around the $ 1,740 level, well within the striking distance of multi-year highs.
Growing fears about the second wave of coronavirus infections and hopes of the end of a rapid global economic recovery have overshadowed recent optimism about the reopening of economies in some parts of the world. This, in turn, led to a further decline in the stock markets and benefited the safe haven status of the precious metal.
The sense of risk further receded amid worsening US-China relations, especially after the US Department of Commerce announced it was banning Huawei from acquiring semiconductor and chipsets made in the U.S. using American software and technology. This coupled with a certain aggressiveness US dollars the sale gave an additional boost to the dollar merchandise.
USD experiences aggressive sales after worse-than-expected US monthly Retail sales The figures. In fact, overall sales fell 16.4% in April, compared with a projected 12% drop. In addition, non-auto sales fell 17.2% and the closely watched retail sales control group also fell sharply by 15.3%.
This comes in the wake of the overnight upside breakout from a symmetrical triangular resistance near the $ 1,720-22 supply area and supports the outlook for further short-term gains. However, conditions slightly overbought on the 4-hour chart forced bullish traders to take a break before multi-year highs resistance close to $ 1,748, set in April.