The metal tanked as a free-fall in commodities led by crude oil weighed on the metal. The COMEX Gold futures fell to a two week low near $1910 per ounce. Some buying was seen in the commodity as US equities saw massive losses in last session on heavy drop in tech stocks. President Donald Trump said he intends to curb the US economic relationship with China. The yellow metal currently trades at $1936 per ounce, down 0.38% on the day.
Gold prices were steady on Wednesday as the metal was caught between a strengthening U.S. dollar and a pullback in global equities, with investors awaiting monetary policy strategies from central banks. Spot gold was little changed at $1,929.30 per ounce after falling to a near two-week week low of $1,906.24 on Tuesday. U.S. gold futures eased 0.3% to $1,936.80. The dollar jumped to a near one-month high, as the pound dropped to a six-week low on renewed worries about Brexit and as risk appetite waned. A stronger greenback makes gold more expensive for holders of other currencies. Britain will set out new details of its blueprint for life outside the European Union on Wednesday, publishing legislation a government minister acknowledged would break international law in a “limited way” and which could sour trade talks. Euro zone data showed its economy shrivelled slightly less than initially estimated in the second quarter, but the drop was still the sharpest ever as consumer spending slumped due to COVID-19 restrictions. Market participants are now waiting for the European Central Bank policy meeting due on Thursday, while the U.S. Federal Reserve’s next meeting is scheduled for next week. U.S. Customs and Border Protection officials have prepared orders to block imports of cotton and tomato products from western China’s Xinjiang region over allegations they are produced with forced labour.
TREND : WEAK BEARISH
Time : 09/09/2020
Pivot : 1926.16
Technical View : LONG ABOVE 1935.24
Target : 1945.32, 1960.22, 1979.59
Technical View : SHORT BELOW 1917.90
Target : 1910.65, 1891.38, 1876.38