- Gold Nine Year Highs
- Risk Aversion Spike
- Copper Industrial Demand
The bullish momentum around gold remained intact, Wednesday morning, despite the precious metal dipping after rallying past the $1800 level. Copper was also up, touching seven-month highs supported by strong demand for the industrial metal.
The bullion has since clocked a nine-year high supported by a spike in risk sentiment in the market. The precious metal continues to hold on to gains above the $1800 level as investors flock safe havens concerned by the growing risk of a second wave of coronavirus infections.
Time : 07-08-2020
Pivot : $1788.41
Technical View : Long above $1795.92
Targets : $1803.44 – $1812.37 – $1827.28
Comments : Weak Bullish to Neutral
Last Price : 1798.34
Technical View : Short below $1783.61
Target : $1779.21 – $1764.39 – $1755.36
The dip Wednesday morning could be attributed to traders taking profits after a recent spike higher. The precious metal is up by more than 10% for the year. The bullish tone around the metal has continued to edge higher amidst growing concerns about the economic recession fuelled by the COVID-19 pandemic.
In the run-up to the 2009 financial crisis, Gold dipped after the Lehman Brothers filed for bankruptcy. Later on, it rallied as the equity market melted down. Price went on to hit an all-time high in 2011 as the Standard & Poor downgraded the U.S credit rating.
Gold had an impressive second quarter, rallying by more than 13%, the largest quarterly increase since 2016. Supporting the upward momentum is a spike in risk aversion in the market. Escalating tensions between the U.S and China over Hong Kong and a looming trade war are some of the developments that continue to affirm bullish tone on the precious metal.
Copper Surging Demand
Copper, on the other hand, hit a seven-month high Wednesday morning as hopes of China’s economic recovery continued to sway trader’s sentiments on the industrial metal.
Time : 07-08-2020
Pivot : $2.7605
Technical View : Long Above $2.7645
Target : $2.7787 – $2.7961 – $2.8133 – $2.8474
Comments : Bullish
Last Price : $2.8030
The opening up of the Chinese economy amidst the COVID-19 pandemic has helped fuel demand for the metal commonly used for various industrial operations. A spike in demand after a slump to record lows in March continues to drive prices higher.