Home Gold News Gold Continued its Surge on Monday Morning – Topping a Record...

Gold Continued its Surge on Monday Morning – Topping a Record High.

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Gold prices extended gains on Monday, just $3 shy of an all-time high, driven by U.S.-China tensions and a weaker dollar, while expectations of more stimulus to revive pandemic-hit economies lifted the metal’s appeal as an inflation hedge. U.S. Secretary of State Mike Pompeo took fresh aim at China last week, saying Washington and its allies must use “more creative and assertive ways” to press the Chinese Communist Party to change its ways.

The White House and Senate Republicans have reached “an agreement in principle” on the next coronavirus relief bill, a White House official said on Sunday. Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement. The dollar index fell 0.1% to a near two-year low against its rivals, making gold less expensive for holder of other currencies.

Speculators increased their bullish positions in COMEX gold and silver contracts in the week to July 21, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Physical gold rates flipped to a discount in India last week as local prices surged while China’s discounts slipped further on weak retail demand. Silver jumped 1.3% to $23.04 per ounce.

TREND : BULLISH

Time                                      :           27/07/2020

Pivot                                      :           1925.43

Technical View                     :             LONG ABOVE 1938.21

Target                                   :            1950.99, 1970.07, 1995.71

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