Gold prices rose on Tuesday to their highest level in nearly two weeks, as the dollar slipped to multi-year lows on bets that U.S. interest rates would stay lower for a longer period after the Federal Reserve’s new policy framework. U.S. gold futures rose 0.6% to $1,990The rise in gold came as the dollar and U.S. bond yields slumped. The Dollar Index, which pits the greenback against six major currencies, fell back below the key 93-level while the 10-Year Treasury note posted a loss of more than 4% on the day.
Last week, Fed Chairman Jerome Powell said the central bank would adopt an average inflation target, meaning rates are likely to stay low for longer. Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies. Investors will also be looking out for two sets of U.S. jobs data this week that will decide the direction for markets.
TREND : WEAK BULLISH
Time : 01/09/2020
Pivot : 1975.71
Technical View : LONG ABOVE 1986.73
Target : 1997.76, 2011.17, 2032.88
Technical View : SHORT BELOW 1968.97
Target : 1962.24, 1940.63, 1927.12