COMEX Gold futures saw mixed moves last week. The metal rallied initially on dovish comments from the US Fed. US Federal Reserve Chairman Jerome Powell said the pace of jobs growth in US is rising faster than many people expected, but it may take years before the economy has fully recovered. Powell noted that US economy likely will require more government spending and low interest rates for years. However, the metal eased from one and half week high. COMEX Gold futures closed just under $1950 per ounce mark.
Not much of buying has been visible in Gold on rallies over recent weeks as traders have become cautious after the metal failed to hold above $2000 per ounce mark at the start of this month. According to a latest update from the World Gold Council or WGC, Gold-backed ETFs and similar products (gold ETFs) recorded their ninth consecutive month of inflows in August, albeit at their slowest pace for 2020. Collectively, gold ETFs added 39 tonnes (t) during the month, equivalent to US$2.1bn or 0.9% of assets under management (AUM) as the price of gold reached a record high of US$2,067 early in August.
Gold prices were flat on Monday . . . . .
Gold prices were flat on Monday as investors maintained a cautious approach ahead of U.S. Federal Reserve’s monetary policy decision this week and as optimism around a potential COVID-19 vaccine lifted appetite for riskier assets. Spot gold was mostly unchanged at $1,941.11 per ounce. U.S. gold futures were also steady at $1,948.30. Asian shares started higher on Monday as hopes of a coronavirus vaccine were rekindled after AstraZeneca resumed its phase-3 trial. Euro zone governments must keep spending heavily to aid the bloc’s recovery from its historic pandemic-induced recession, complementing already super-easy monetary policy, European Central Bank President Christine Lagarde said on Sunday. The dollar index held steady against its rivals. All eyes were on the U.S. central bank’s two-day policy meeting scheduled on Sept. 15-16. Physical gold dealers in India were forced to offer discounts for a fourth straight week as bullion remained unattractive for most retail consumers. Speculators increased their net long position in gold by 3,608 contracts to 154,629 in the week ended Sept. 8. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4% to 1,248.00 tonnes on Friday. Silver fell 0.3% to $26.68 per ounce.
TREND : SIDEWAYS
Time : 14/09/2020
Pivot : 1945.72
Technical View : LONG ABOVE 1950.21
Target : 1954.68, 1960.75, 1969.51
Technical View : SHORT BELOW 1942.76
Target : 1939.81, 1930.98, 1925.16