Bullion counter may extend its bullish rally, But as profit booking at higher level cannot be denied. Gold soared to a nine-year peak on Tuesday, boosted by a dollar sell-off and expectations for increased stimulus to aid the recovery of pandemic-hit economies, while silver dashed past the $20 threshold to an over six-year high. U.S. gold futures settled up 1.5% at $1,843.9. The U.S. dollar has dropped as the world is looking a little bit better. Interest rates have fallen across the yield curve and that again is another factor helping gold.
The U.S. dollar, viewed as safe-haven rival to bullion, hit more than a four-month low. U.S congressional leaders are set to discuss a fresh stimulus package this week. Hopes for another round of U.S. economic stimulus after congressional Republicans announced plans to seek another $1 trillion in coronavirus economic relief also supporting sentiment. Signs that the European Union countries are willing to compromise on a 1.8 trillion-euro ($2 trillion) coronavirus stimulus plan, should also keep bullion well supported. The silver price is rising because of its duality as not only a valuable investment but also as an industrial metal.
TREND : WEAK BULLISH
Time : 22/07/2020
Pivot : 1846.22
Technical View : LONG ABOVE 1856.05
Target : 1865.87, 1876.63, 1895.70, 1925.44
Technical View : SHORT BELOW 1836.82
Target : 1827.42, 1816.89, 1797.77, 1778.61