Gold recovered as one week lows offered good support to the metal. Fresh lockdown restrictions across Europe due to spikes in coronavirus infections also triggered safe haven buying in the metal. The COMEX Gold futures added 0.10% to trade at $1910 per ounce.
In a latest communique, the G20 Finance Ministers & Central Bank Governors noted that while the global economy is experiencing a sharp contraction in 2020 due to the impact of the COVID-19 pandemic, the outlook is less negative with global economic activity showing signs of recovery as our economies have been gradually reopening and the positive impacts of our significant policy actions started to materialize. However, the recovery is uneven, highly uncertain and subject to elevated downside risks.
Gold prices inched lower on Friday, on track for its first weekly decline in three, as the dollar held firm and U.S. stimulus talks showed no progress. Spot gold fell 0.1% to $1,906.39 per ounce. It is down 1.2% for the week so far, having posted two straight weekly gains. U.S. gold futures were up 0.1% at $1,910.60. The dollar index was steady near a two-week peak hit in the previous session. The greenback was headed for its first weekly gain in three. U.S. President Donald Trump said on Thursday he was willing to raise his offer of $1.8 trillion for a COVID-19 relief deal with Democrats in Congress, but the idea was shot down by his fellow Republican, Senate Majority Leader Mitch McConnell. The number of Americans filing new claims for jobless benefits rose to a two-month high last week, stoking fears the pandemic was inflicting lasting damage to the labour market. The European Union put the onus on Britain to compromise on their new economic partnership or stand ready for trade disruptions in less than 80 days. British Prime Minister Boris Johnson will respond and set out his approach to the talks on Friday. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.15% to 1,276.06 tonnes on Thursday. Silver fell 0.2% to $24.26 per ounce
TREND : WEAK BEARISH / SIDEWAYS
Time : 16/10/2020
Pivot : 1900.98
Technical View : LONG ABOVE 1907.66
Target : 1914.44, 1923.03, 1935.43
Technical View : SHORT BELOW 1896.86
Target : 1893.05, 1880.75, 1872.06