- The Gold range of the piece is intact above $1700 in the midst of the best mood of the market.
- A Huge global corona virus recovery, the second, the virus, the waves, the fears underlying them.
- All eyes on remain on Powell’s speech, to a new orientation.
Gold price (XAU/USD) trade is sluggish up to now and this Friday, back-and-forth within a $6 range just above 1700 level, in the expectation of a clear direction from the u.s. Federal Reserve (Fed) Chairman, J. secretary Powell’s speech.
The Gold bulls are going to be looking for new ideas on the Federal reserve’s advice, in the light of the recent debate on negative interest rates and the gloomy economic outlook, which could trigger a new sell-off in the usd and boost the price of bullion.
In the united states, the returns to the Treasury are already in negotiations with major losses, in the middle of a negative rate chatter, and softer than expected US core The CPI the man, in turn, underlying the non-performance of the gold. During this time, the yellow metal continues to draw support from the massive monetary and fiscal stimulus deployed around the world to cushion the economic shock of the epidemic virus.
In addition, the weaker start for European markets, but also maintains the vitality of your untouched all-around gold, as fears about the second virus wave and the us-China trade tensions linger. In the evidence of the increased confidence in the precious metal, “SPDR Gold Trust holdings, the world’s largest gold-backed exchange-traded funds has increased from 0.24% to 1,083.66 tons, Tuesday, by Reuters.
Gold: Technical levels to watch
At press time, gold trades modestly flat at 1703.20, with continued progress likely to be gains traction, to just above $1712 levels (intermittent, tops). On the other side of the coin, the downside is limited by the 50-hour SMA at 1702.04, a break below which, is the 1700 level will be tested.