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Gold Tumbled as Commodities Went For a Toss Amid a Heavy Slide in Equities

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Gold tumbled as commodities went for a toss amid a heavy slide in equities. Global stocks slumped as rising Covid-19 cases in Europe and worries over economic growth hurt the sentiments. While stocks were hammered the safe-haven US dollar, measured by the ICE US Dollar Index rose nearly 1%. US Treasury bonds, also a safety investment, also saw high demand Monday as the 10-year bond yield dipped to a near 3 week low of 0.65%. Gold was seen sliding in an accelerated manner as prices fell through $1950 per ounce and tested a five week low under $1890 per ounce. The counter saw some buying afterwards and pulled back above $1900 per ounce mark. However, an intraday tumbled of more than $70 has created some panic in Gold market now. COMEX Silver also tanked around 10% in intraday moves.

Gold prices on Tuesday inched up after slumping 3.4% in the previous session, as the resurgent dollar held on to overnight gains, while economic concerns over fresh rounds of coronavirus-induced lockdowns across Europe also helped buoy the metal. Spot gold rose 0.3% to $1,918.20 per ounce and U.S. gold futures gained 0.6% to $1,921.50 on Tuesday. Bullion prices fell to their lowest level since Aug. 12 at $1,882.70 on Monday as the U.S. dollar soared to an almost six-week high. Federal Reserve remains committed to using all the tools at its disposal to help the U.S. economy recover from the blow delivered by the coronavirus pandemic, Chair Jerome Powell said on Monday, ahead of his three-day of testimony to Congress this week. A surge in fresh coronavirus infections in countries such as France, Austria or the Netherlands are worrying, German Health Minister Jens Spahn said on Monday, adding that Germany will sooner or later import cases from there. Gold, which is often used as a safe store of value during times of political and financial uncertainty, has risen nearly 26% this year. Britain will face an exponentially growing death rate from COVID-19 within weeks unless urgent action is taken to halt a rapidly spreading second wave of the outbreak, the country’s senior medics said on Monday. The world’s largest 50 investment banks are on track to double their income from precious metals this year to around $2.5 billion, most of it from gold, Coalition, a banking consultancy, told Reuters.

TREND : BEARISH

Time                                      :           22/09/2020

Pivot                                      :           1915.54

Technical View                     :             LONG ABOVE 1932.88

Target                                   :            1950.22, 1988.64, 2022.44

Technical View                     :             SHORT BELOW 1996.52

Target                                   :            1877.61, 1843.91, 1805.38

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