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Gold Edged Up On Good Investment Demand Hopes


Gold edged up on good investment demand hopes. The metal extended gains from two week low and hit a one week high near $1960 per ounce. Gold currently trades at $1954 per ounce, almost unchanged on the day.

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. As equities continued to climb to new all-time highs, interest rates rose and yield curves steepened, investor positioning in the gold market consolidated later in the month and the gold price ended the month slightly lower (-0.38% or US$1,957/oz) for the first time in five months. Year-to-date, global net inflows have come in at 938t (US$51.2bn). Gold also rose as late-stage studies of AstraZeneca’s Covid-19 vaccine candidate are on temporary hold. In a statement issued on Tuesday evening, the company said its standard review process triggered a pause to vaccination to allow review of safety data.

Gold prices held steady near a one-week high on Thursday as the U.S. dollar weakened ahead of a policy decision by the European Central Bank due later in the day. Spot gold was little changed at $1,946.10 per ounce U.S. gold futures were flat at $1,954.50. The dollar index fell from a four-week high against its rivals, making gold less expensive for holders of other currencies. The ECB is set to announce its rate decision today. Investors will watch out for its inflation forecasts, although no major policy moves are expected since it has acted aggressively to shore up the virus-hit economy. The ECB’s growth and inflation projections to be published on Thursday will only show slight changes compared with the bank’s June forecasts, Bloomberg reported on Wednesday. The Bank of Canada on Wednesday held its key overnight interest rate steady at 0.25%, as expected, but left the door open for possible future changes to bond buying. Meanwhile, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 1,252.96 tonnes on Wednesday from 1,250.04 tonnes on Tuesday. Silver fell 0.4% to $26.92 per ounce.


Time                                      :           10/09/2020

Pivot                                      :           1939.34

Technical View                     :             LONG ABOVE 1948.73

Target                                   :            1958.32, 1969.93, 1989.06

Technical View                     :             SHORT BELOW 1933.26

Target                                   :            1927.18, 1908.15, 1896.44


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