Home Gold News Gold Bullish At Nine-Year highs And Silver At 7-Month Highs

Gold Bullish At Nine-Year highs And Silver At 7-Month Highs

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  • 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.

Gold Rally

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.

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