Gold fell more than 1.5% on Wednesday as the dollar firmed and a strong rebound in U.S. manufacturing sector fuelled hopes of a rapid recovery in the coronavirus-hit economy. The dollar rose 0.5%, further recovering from a more-than two-year low hit in the last session. New orders for U.S.-made goods increased more than expected in July, while Tuesday’s U.S. manufacturing data showed activity accelerated to a near two-year high in August, increasing optimism about a steady recovery. U.S. private payrolls, on the other hand, increased less than expected in August, pointing to a slowing labor market recovery. Investors are now focusing on Thursday’s initial U.S. jobless claims report and Friday’s non-farm payroll data. Gold should remain supported as buyers tend to step in on big dips on continued concerns of the pandemic and lower interest rate environment.
Gold extended losses as positive US equities and worries over end user demand in India weighed on the metal. The COMEX Gold futures have eased this week after hitting a two week high of $2000 per ounce. COMEX Gold is trading around $1951 per ounce, unchanged on the day after falling 1.5% in last session and testing its one week low mark.
TREND : WEAK BEARISH
Time : 03/09/2020
Pivot : 1948.45
Technical View : LONG ABOVE 1957.98
Target : 1967.52, 1989.27, 2006.22
Technical View : SHORT BELOW 1938.24
Target : 1928.04, 1910.69, 1888.91