Gold stayed supported yesterday but soaring equities capped the upside. European markets surged with the indices in UK and Germany spiking 2%. US markets were shut for a public holiday.COMEX Gold currently trades at $1929 per ounce, down marginally on the day.
Gold, it seems, is looking for a new catalyst to take it back above the key $2000 per ounce mark. It is now clear that retail demand will not be returning back with vengeance anytime soon in key markets , the price action will be dependent on the investment demand only.
Gold prices eased on Tuesday as the dollar strengthened
Gold prices eased on Tuesday as the dollar strengthened, although rising doubts over the economic recovery from the COVID-19 slump limited losses, with investors awaiting the outcome of the European Central Bank meeting this week. Spot gold was down 0.2% at $1,925.68 per ounce.U.S. gold futures were steady at $1,934.60. The dollar index rose 0.2% against its rivals, making gold more expensive for holders of other currencies. More than 27.19 million people have been reported to be infected by the novel coronavirus globally and 888,326 have died, according to a Reuters tally. Japan’s economy shrank more than initially estimated in the second quarter, while German industrial output rose far less than expected in July, suggesting Europe’s largest economy faces a slow return to pre-pandemic production levels. The U.S. Federal Reserve’s landmark shift to a more tolerant stance on inflation will be a drag on the dollar for years and will raise hard questions about the role of central banking, challenging policymakers from Frankfurt to Tokyo.
TREND : WEAK BULLIISH / SIDEWAYS
Time : 08/09/2020
Pivot : 1927.41
Technical View : LONG ABOVE 1930.11
Target : 1932.81, 1941.73, 1946.71
Technical View : SHORT BELOW 1922.95
Target : 1918.49, 1913.61, 1904.58