Home Gold News Gold Tests One Week Low Before Witnessing Recovery

Gold Tests One Week Low Before Witnessing Recovery


COMEX Gold fell sharply amid sustained selling pressure in last session. The metal tested one week low under $1940 per ounce before some buying emerged on flat moves in US equities and Covid-19 worries. World Health Organization on Thursday warned that Europe is bracing for a very serious situation regarding the coronavirus, as it is going to transmit at alarming rates across the continent. This cut losses in Gold and the metal currently trades at $1959 per ounce, up 0.50% on the day.

Fund buying is active in Gold at lower levels, latest price action suggests. Large precious metals speculators continued to increase their net long positions further in the Gold futures markets last week after recent drop, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on last Friday. The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 236473 contracts in the data reported through September 7th 2020. This was a weekly gain of 5677 net contracts. The net long positions are now at a one month high.

Gold Prices Rose On Friday As The Dollar Slipped

Gold prices rose on Friday as the dollar slipped, while lacklustre U.S. employment data and vows by major central banks to roll out further stimulus if required to revive their coronavirus-hit economies also bolstered the metal’s appeal. U.S. gold futures were up 0.6% at $1,960.80. The dollar index was down 0.1% against its rivals, making gold more attractive for buyers holding other currencies. The weekly jobless claims report from the U.S. Labor Department, the most timely data on the economy’s health, showed nearly 30 million people were on unemployment benefits at the end of August, laying bare the continuing economic and human devastation from the coronavirus crisis. The Bank of England said it was looking more closely at how it might cut interest rates below zero as Britain’s economy faces a triple whammy of rising COVID-19 cases, higher unemployment and a possible new Brexit shock. The Bank of Japan kept monetary policy steady and signalled readiness to ramp up stimulus if job losses from the pandemic heightened the risk of deflation. Swiss exports of gold to the United States all but halted in August while shipments to China and India rose, customs data showed, suggesting a big transfer of bullion to New York that followed the pandemic has run its course. Silver fell 0.5% to $26.97 per ounce.


Time                                      :           18/09/2020

Pivot                                      :           1946.35

Technical View                     :             LONG ABOVE 1953.58

Target                                   :            1960.82, 1969.52, 1983.51

Technical View                     :             SHORT BELOW 1942.05

Target                                   :            1937.74, 1923.86, 1915.06


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