Gold stayed supported as a break above $1900 extended. The metal quotes at $1922 per ounce, up 0.38% on the day. US stocks recovered after the correction seen on Monday as market focussed on fresh aid package to bolster the economic recovery. The World Gold Council (WGC) noted in a survey that Russian investors believe gold offers security. Gold is seen as an effective store of value. Most Russian investors believe it holds its long-term value and protects against currency and inflation fluctuations. Two thirds of them say that it evokes feelings of long-term security. Gold is not currently considered a mainstream investment among Russia. But there is a significant conversion opportunity, says WGC. Around 68% of the survey participants noted that Gold is a good safeguard against inflation/currency fluctuations.
Gold prices rose on Wednesday, propped up by a softer dollar and increasing hopes for a new U.S. coronavirus relief package ahead of the November elections. Spot gold rose 0.3% to $1,912.11 per ounce. U.S. gold futures were steady at $1,916.40. The dollar index was down 0.1% against rivals. The White House and Democrats in the U.S. Congress moved closer to agreement on a fresh coronavirus aid as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party. The current rise in U.S. infections may not dent the recovery too much, Chicago Federal Reserve Bank President Charles Evans said, adding he remains “reasonably optimistic” unemployment will fall to 5.5% by the end of next year. A frustrated European Union and piqued Britain both exhorted the other to compromise to avoid a fast-approaching disruptive finale to the five-year Brexit drama that would add to economic pain from the coronavirus crisis. Switzerland’s gold exports to China and India dwindled in September, with the country instead importing record volumes of bullion from Hong Kong and sending metal to Britain, customs data showed. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.23% to 1,269.93 tonnes on Tuesday.
TREND : WEAK BULLISH
Time : 21/10/2020
Pivot : 1911.48
Technical View : LONG ABOVE 1918.91
Target : 1926.33, 1934.81, 1949.14
Technical View : SHORT BELOW 1907.31
Target : 1903.12, 1888.89, 1880.31