Gold futures soared to one and half week high of $1980 per ounce but fell thereafter as US dollar rose amid increasing risk aversion in the US trades. COMEX Gold tanked near $1950 per ounce mark and currently trades at $1946 per ounce, down 0.88% on the day.
Gold yet again moved up in line with the equities. In a related news, the US producer price index rose 0.3% in August, moderating from a surge of 0.6% in July, according to the Labor Department. Year over year through August, the PPI fell 0.2% after dropping 0.4% in the 12 months through July. While inflation has ceased to be a factor for Gold recently, the lower monthly figure weighed on the metal. A heavy slide of nearly 3% in WTI Crude oil also played spoilsport for Gold
Gold prices fell on Friday after a sharp rise in the previous session as the dollar regained lost ground, although doubts over a swift global economic recovery kept bullion on track for a weekly gain. Spot gold was down 0.3% at $1,947.41 per ounce by after hitting its best level since Sept. 2 at $1,965.94 on Thursday. Gold has gained 0.8% so far this week. U.S. gold futures fell 0.5% to $1,955.30. The dollar index held firm against its rivals, recovering from a drop against the euro in the previous session. A stronger greenback makes gold more expensive for holders of other currencies. The European Central Bank left policy unchanged on Thursday. The U.S. Senate on Thursday killed a Republican bill that would have provided around $300 billion in new coronavirus aid, as Democrats seeking far more funding prevented it from advancing. The number of Americans filing new claims for unemployment benefits hovered at high levels last week, suggesting the labor market recovery from the COVID-19 pandemic was stalling. Investors now await British GDP data and U.S. inflation numbers due later in the day for further clarity on the progress of the global recovery from a coronavirus-induced economic slump. Silver fell 0.3% to $26.84 per ounce.
TREND : SIDEWAYS
Time : 11/09/2020
Pivot : 1947.44
Technical View : LONG ABOVE 1953.25
Target : 1959.06, 1977.36, 1988.25
Technical View : SHORT BELOW 1938.45
Target : 1929.47, 1918.68, 1900.28