COMEX Gold futures were caught in a downward spiral yesterday as rising US dollar exerted continued selling pressure in the metal. The commodity fell to a one week low of $1850 per ounce in US session before witnessing a pullback on soaring Covid-19 cases globally, Overall scenario remains supportive for Gold though the latest developments on Covid-19 vaccines can curb large up moves. The International Monetary Fund said in a new report that while global economic activity has picked up since June, there are signs that the recovery may be losing momentum, and the crisis is likely to leave deep, unequal scars. The virus has killed more than a million people and left tens of millions unemployed, especially among low-skilled workers, women, and youth. With infection rates still high in many parts of the world, social distancing continues to hold back momentum in the service sector. Gold trimmed losses on these comments and currently trades at $1863 per ounce, up 0.09% on the day.
Gold prices fell on Friday, weighed by uncertainty over more U.S. stimulus measures after Treasury Secretary Steven Mnuchin said key pandemic lending programs at the Federal Reserve would expire by the end of the year. Spot gold fell 0.2% to $1,863.21 per ounce and was headed for the second week of declines. U.S. gold futures were flat at $1,862.60. In a letter to Fed Chair Jerome Powell, Mnuchin said the $455 billion allocated to Treasury under the CARES Act last spring, which supports Fed’s lending to businesses, nonprofits and local governments, should be instead available for Congress to reallocate. The number of Americans filing first-time claims for jobless benefits rose last week, likely as new business restrictions to control the pandemic unleashed a fresh wave of layoffs, which could further slow the labor market recovery. The flow of gold from east to west triggered by the pandemic eased in October as Switzerland’s imports of bullion from Asia fell and it exported more to India than in any month since May 2019, Swiss customs data showed on Thursday. Holdings in SPDR Gold Trust fell 0.14% to 1,217.25 tonnes on Thursday. Silver fell 0.1% to $24.06 per ounce.
TREND : SIDEWAYS
Time : 20/11/2020
Pivot : 1862.91
Technical View : LONG ABOVE 1868.04
Target : 1873.17, 1878.55, 1888.82
Technical View : SHORT BELOW 1860.01
Target : 1857.12, 1846.95, 1841.47