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Gold Supported, See Good Gains

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COMEX Gold futures stayed well supported yesterday. The metal hit one and half week high of $1935 per ounce. DOW saw continued selling pressure in intraday moves as traders focussed on the development around fresh fiscal stimulus. Dollar index stayed slippery and fell near one month low, keeping Gold afloat.

The Covid-19 pandemic is exacting a heavy toll on Europe. More than 240,000 people have lost their lives. Millions have suffered the illness themselves, the loss of loved ones, or major disruption in their work, their businesses, and their daily lives, IMF noted in a latest blog post. The economic impact of the pandemic has been enormous. The IMF’s latest Regional Economic Outlook for Europe forecasts a 7% decline in Europe’s GDP in 2020. The recovery from this crisis will be uneven and partial.

Gold edged lower on Thursday as the dollar recovered from a seven-week trough and some concerns emerged that an agreement on a new U.S. fiscal coronavirus aid package will not be reached until after the presidential election. Spot gold fell 0.2% to $1,920.86 per ounce retreating from a more than one-week high of $1,931.01 hit in the previous session. U.S. gold futures were down 0.3% to $1,924.30 per ounce. Stimulus talks between U.S. lawmakers faced a setback on Wednesday when President Donald Trump accused the Democrats of being unwilling to craft a compromise on aid, despite reports of some progress earlier in the day.The economic recovery is uneven and uncertain and will require continued support to ensure it becomes broad-based and sustainable, U.S. Federal Reserve Governor Lael Brainard said on Wednesday, emphasising the need for additional fiscal support. Britain will resume talks with the European Union on Thursday, marking a new push by the two sides to protect billions of dollars worth of trade from the beginning of next year. Gold could touch new highs next year, even as its record-breaking rally slows to average less than $2,000 dollars an ounce, a Reuters poll showed. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.1% to 1,269.35 tonnes on Wednesday from 1,269.93 tonnes on Tuesday.

TREND : SIDEWAYS

Time                                      :           22/10/2020

Pivot                                     :          1917.83

Technical View                     :           LONG ABOVE 1922.21

Target                                   :           1926.59, 1939.25, 1947.12

Technical View                      :           SHORT BELOW 1911.74

Target                                   :           1905.66, 1897.89, 1885.12

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