Gold was up on Friday morning in Asia, reaching another record high as U.S. treasury yields remain low and monetary policy accommodative. The deterioration of the global economy has pushed treasury yields down to their lowest levels in five months, reducing the opportunity cost of holding non-interest bearing gold.
The greenback, although up today, is also heading for a seventh consecutive weekly decline, making gold less expensive for holders of other currencies. Meanwhile, the U.S. Congress has yet to conclude negotiations on another COVID-19 aid package even as President Donald Trump said he would take executive action if the standstill persists. The last package expired on July 31 and without some kind of help the U.S. economic recovery could be put in doubt, leading to further drops in interest rates. The U.S. payrolls report for July is forecast to show a slowdown in job gains, underlining weak prospects for a demand recovery as lawmakers bicker over fresh stimulus measures
TREND : WEAK BULLISH
Time : 07/08/2020
Pivot : 2057.78
Technical View : LONG ABOVE 2066.01
Target : 2074.24, 2091.61, 2108.26