Home Gold News Gold Paused After Rallying for Nine Days

Gold Paused After Rallying for Nine Days

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Gold prices edged lower on Thursday as investors’ appetite for riskier assets improved after the Federal Reserve pledged to support the coronavirus-battered U.S. economy, although a weaker dollar limited losses for the bullion. U.S. gold futures rose 0.3% to $1,959.60. At the end of its two-day policy meeting on Wednesday, the Fed said it will keep its interest rate target range until it is confident the economy has weathered the COVID-19 pandemic and is on track for maximum employment and price stability goals.

The surge in U.S. coronavirus cases is beginning to weigh on economic activity, Fed Chair Jerome Powell said, and promised the U.S. central bank would “do what we can, and for as long as it takes,” to limit damage and boost growth. Meanwhile, the dollar index dropped to a near two-year low against its rivals, making gold less expensive for holders of other currencies. U.S. President Donald Trump said that his administration and Democrats in Congress were still “far apart” on a new coronavirus relief bill. SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 1,241.96 tonnes on Wednesday.

TREND : WEAK BEARISH

Time                                      :           30/07/2020

Pivot                                      :           1962.32

Technical View                     :             SHORT BELOW 1953.05

Target                                   :            1943.74, 1922.86, 1904.45

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